What are the characteristics of derivatives?



What are the characteristics of derivatives?..

Answer / Neeraj Semwal

Derivatives possess several key characteristics:
1. Derivatives derive their value from an underlying asset.
2. They are used for hedging, speculation, or arbitrage purposes.
3. Derivatives can be traded on various exchanges or over-the-counter (OTC).
4. Derivatives have a maturity date, after which they expire.

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