Derivatives Market
The derivatives market is a financial market where contracts such as futures, options, forwards, and swaps are bought and sold. These contracts derive their value from an underlying asset, which can be stocks, commodities, currencies, or other financial instruments. This market allows investors to hedge risks, speculate on price movements, or leverage positions. It's a complex subset of other markets, including the stock, commodity, and currency markets, based on the underlying asset linked to the derivative contract. The derivatives market provides opportunities for both risk management and speculation.
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