Last Updated on 2023-12-12 by Admin
Securities whose prices are derived from the prices of other securities. Useful for hedging and speculation.
Types
- Forwards
- Futures
- Options
- Swaps
Traded
- Exchange
- Over-The-Counter (OTC)
- Cleared OTC Derivatives
- Uncleared OTC Derivatives
Reasons
- Access
- Arbitrage
- Asset Allocation
- Contingency
- Hedging
- Leverage
- Speculation
- Taxation
Forwards
- Derivative Contract
- Over-The-Counter (OTC)
- Customised Contract
Futures
- Derivative Contract
- Exchange Traded
- Standardised Contract
Options
Swaps
- Derivative Contract
- Swap of Interest Rates between two parties
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