Derivatives are financial instruments whose value changes 
in response to the changes in underlying variables. The 
main types of derivatives are futures, forwards, options, 
and swaps.

The main use of derivatives is to reduce risk for one 
party. The diverse range of potential underlying assets and 
pay-off alternatives leads to a huge range of derivatives 
contracts available to be traded in the market. Derivatives 
can be based on different types of assets such as 
commodities, equities (stocks), bonds, interest rates, 
exchange rates, or indexes (such as a stock market index, 
consumer price index (CPI) — see inflation derivatives — or 
even an index of weather conditions, or other derivatives). 
Their performance can determine both the amount and the 
timing of the pay-offs.

DERIVATIVES IS A PRODUCT WHOSE VALUE IS DERIVES FROM THE 
VALUE OF THEIR UNDERLINE ASSETS.

Derivatives : Deriving the future value of underlying asset.

securities which derive their values from an underlying 
asset

Derivaties are financial instruments whose value are 
derived from underlying asstets,whivh may be 
stochk,shares,dedentures,currency etc

derivative is product whose value are derived from one or
more basic underline asset. which may be stock, shares,
debentures, or currency etc

Derivatives are financial contracts, or financial 
instruments, whose values are derived from value of an 
underlying asset. The underlying asset on which derivatives 
are based can be commodities, equities (stocks), 
residential mortgages, commercial real estate loans, bonds, 
interest rates, exchange rates, or indices (such as a stock 
market index, consumer price index (CPI) — see inflation 
derivatives — or even an index of weather conditions, or 
other derivatives). Credit derivatives are based on loans, 
bonds or other forms of credit.

The main types of derivatives are futures, forwards, 
options and swaps.