A Derivative is a financial tool whose value depends on one or more basic variables called underlying variables. The underlying variables are financial security such as an option or future. The most common underlying assets include stocks, bonds, currencies, commodities, interest rates and market indexes. Derivatives have become an important part in the field of finance in which options and Futures are traded actively on many exchanges. In many financial advisories and banks, different types of options are daily traded outside exchanges. In others words, we can say that Derivatives is a tool that drove to minimize the risk.
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