Derivatives markets & products

A derivative is a financial product that derives its value from the value of another asset.

The most common type of derivative is the futures contract, which is an agreement to buy or sell an asset at a future date for a predetermined price.

Other derivatives include option contracts, which provide the holder the right but not the obligation to either buy or sell an asset at a later period, and swap contracts, which are agreements to exchange one asset for another at a later date.