Answer / janki

derivative is a financial contract where the price is
derived from the spot market ie underlying. there are 4
types of derivatives.
forward
futures
options
swaps
but most commonly used in indian capital market is F & O.

Answer / vicky shukla

Derivative is an financial instrument whose value is
derived from the value of underlying asset it can be
equity,index,interest rate and recently launched currency
derivatives.

The derivatives were launched initially for hedging pupose
and later own widely used because of high profit margin.

major types of derivatives.
forward
futures
options
swaps

Answer / anjali

Derivative is an instrument which derives value from
financial security like shares
Example of Derivative: Option-it is of 2 types
a Call
b Put

Answer / deepak tapadiya

A derivative can be defined as something which derives its
value from an underlying product being a stock, currency,
commodity or anything that carries a market price.

The market price of a product is subject to fluctuations due
to various factors effecting its demand & supply thereby
associating itself to various risk factors.

SO, derivative is a by-product of the core product which can
be used to hedge, speculate & also undertake arbitrage
activities.

Answer / janhavi

Derivative is a contract which derives it's value from some
underlying asset or security .
e.g. utures, forwards, options etc

Answer / rahul

derivative is an one kind of speculation device which can
use in stock market to earn good amount of money in shorter
period.for example if one farmer have 10 kg of rise which
current market price is 10*12=120, 120 is spot price and if
farmer wait for some month and he deal with other person,
come with contract and decide the future price of rise is
130, it is derive from spot price of rise and decided to
sale rise in future at rs 13 per kg.this type of
transaction called as derivative transaction. which means
price of rise decide through observation of current market
price, which help in reduce uncertain losses happen in
future due to market condition.
there is some component
like
hedging
arbitrage
all component of derivatives which use in transaction

Answer / jithender

It is An financial Instrument Whose Value is Dependent on
its Underlying Assets Such as
Stocks
Interest rate
Currency Rate etc.....!

Answer / kd

derivatives is a product whose value derived from one or more basic variables like index,underlying assets.currency.
derivatives mostly used for hadging the trade possition and to reduce t losses

Answer / krishna

derivatives are as follows
1.future
2.forwards
3.optional
4.swaps

Answer / rajashri

Derivative is product the valu derived from underline
assets.
type = future
forword
option
swaps

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