In the financial world, a derivative is a contract between two or more parties whose value is based on an agreed-upon, underlying financial asset (like a security) or set of assets (like an index). Common underlying instruments include bonds, commodities, currencies, interest rates, market indexes, and stocks. Derivatives can be used for a number of purposes, including insuring against price movements (hedging), increasing exposure to price movements for speculation, or getting access to otherwise hard-to-trade assets or markets. Know more about derivatives, the derivatives market and management of derivates through this resource. The PPT also elaborates upon common derivatives like forwards, futures, options, swaps, and variations of these such as synthetic collateralized debt obligations and credit default swaps. Download the resource to know all about derivatives, the building blocks of financial instruments.

Sruthy Santhosh

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