What are Derivatives?
Hi,
I read a lot and I keep passing through the term derivative. Someone could explain to me what all these derivative instruments are, what they are all about and possibly give some real examples. Thanks.
Hi,
I read a lot and I keep passing through the term derivative. Someone could explain to me what all these derivative instruments are, what they are all about and possibly give some real examples. Thanks.
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3 answers

A derivative is a financial hedge whose value depends on or is derived from the underlying asset or group of assets - the benchmark. The derivative itself is a contract between two or more parties and its price is determined by fluctuations in the value of the underlying asset.
The most popular underlying assets for derivatives are stocks, bonds, commodities, currencies, interest rates and market indices. These assets are commonly purchased through brokerage houses.
A derivative is a financial hedge whose value depends on or is derived from the underlying asset or group of assets - the benchmark. The derivative itself is a contract between two or more parties and its price is determined by fluctuations in the value of the underlying asset.
The most popular underlying assets for derivatives are stocks, bonds, commodities, currencies, interest rates and market indices. These assets are commonly purchased through brokerage houses.
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A derivative or derivative is a type of financial instrument whose value depends on the underlying instrument. Derivatives are divided into two groups:
Symmetrical instruments, e.g. futures contracts
Asymmetric instruments, e.g. options presented by the broker
The most popular derivative I know of is CME Bitcoin futures. The contract itself does not represent the real bitcoin but only tracks its price.
A derivative or derivative is a type of financial instrument whose value depends on the underlying instrument. Derivatives are divided into two groups:
Symmetrical instruments, e.g. futures contracts
Asymmetric instruments, e.g. options presented by the broker
The most popular derivative I know of is CME Bitcoin futures. The contract itself does not represent the real bitcoin but only tracks its price.
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