A derivative is an instrument whose value is derived from the value of one or more underlying,
which can be stocks , precious metals, currency, bonds, commodities indices, etc. Differant types of derivative instruments are forwards, futures, options. there are several risks inherent in financial transactions.“Derivatives” include forwards, futures or option contract of predetermined fixed duration, linked for the purpose of contract fulfillment to the value of specified contracts underlying.“A market where various financial derivatives,
The Indian derivatives markets currently have five basic products - Futures based on the Index and stocks, the Options based on Index and Stocks and Commodity futures are bought and sold.As the name suggests, DERIVATIVES means financial instruments having "DERIVED VALUE".