Description
Derivative Market:
The derivative market is a financial market where contracts derive their value from an underlying asset, such as stocks, commodities, currencies, or indices. These contracts are used for hedging risks, speculating, or leveraging positions.
Importance of the Derivative Market:
- Risk Management: Protects against price fluctuations.
- Price Discovery: Helps determine the future value of an asset.
- Liquidity: Enhances market participation and trade volume.
The derivative market is complex and primarily used by experienced investors, institutions, and businesses for advanced financial strategies.
Reviews
There are no reviews yet.