Last answered:

19 Jan 2024

Posted on:

08 Jan 2024


What is derivative market

In short word

1 answers ( 0 marked as helpful)
Posted on:

19 Jan 2024



A derivative market is a financial market for derivative instruments like futures, options, swaps, and forwards. These are financial contracts whose value is derived from the value of an underlying asset, such as stocks, bonds, commodities, currencies, interest rates, or market indexes. 

Players in the derivative market include hedgers, speculators, arbitrageurs, and others looking to manage financial risk or make profits from price movements.

In summary, derivative markets provide a way to manage financial risk or speculate on price movements, but they come with their own set of risks and complexities.

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