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Derivatives (finance) (view source)
Revision as of 03:44, October 18, 2007
, 03:44, October 18, 2007slight expansion and removal of cash as the only underlying asset.
Derivatives are financial instruments based on underlying cash assets. Derivatives can be traded (bought and sold) in a manner similar to [[stock]]. Derivatives include [[futures]], [[options]] and [[swaps]].
Derivatives are financial instruments that derive their value from underlying assets. Derivatives can be traded (bought and sold) in a manner similar to [[stock]]. Derivatives include [[futures]], [[options]] and [[swaps]].
The value and prices of derivatives depends on the fluctuating value of the underlying asset. But as derivatives become more important, their trading can influence the underlying asset pricing.
The value and prices of derivatives depends on the fluctuating value of the underlying asset. But as derivatives become more important, their trading can influence the underlying asset pricing.
Deirvatives range from the exotic to the mundane. Famously, Barclay's Bank trading in derivatives almost lead to their bankruptcy, but the purchase of a simple forward currency contract is also dealing in a derivative.
Derivatives can be traded on a financial exchange, or in an over-the-counter (OTC) market.
Derivatives can be traded on a financial exchange, or in an over-the-counter (OTC) market.
[[category:finance]]
[[category:finance]]