A derivative security is a financial instrument whose value or payoff depends on the value of another underlying asset or security, such as stocks, bonds, interest rates, or commodities. Common types include options, futures, and swaps. These are used for... Read More
A derivative security is a financial instrument whose value or payoff depends on the value of another underlying asset or security, such as stocks, bonds, interest rates, or commodities. Common types include options, futures, and swaps. These are used for hedging risk, speculation, and managing exposure in financial markets.
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