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What is Understanding Financial Derivatives about?

Derivatives are financial instruments whose value is based on an underlying asset like a share or currency. Common derivatives include swaps, futures, and options. Derivatives can be used for speculation, hedging risk, or obtaining exposure to assets that cannot be directly purchased. They are generally categorized based on their relationship to the underlying asset, the market they trade in, and other factors. Derivatives trading allows investors and businesses to transfer risk between each other.

Author

vikysara

Language

EN