Derivatives are financial instruments that have become integral to modern financial markets. Often, they form the majority of trading volumes on most exchanges across the world! These instruments, ...

Derivatives offer a tool to mitigate financial risk by hedging against adverse price movements. Investors use derivatives to control large asset amounts with minimal investments, amplifying gains but ...

If you're familiar with or invest in exchange-traded funds, it's likely you've heard of derivatives ETFs, a category of ETFs that use derivative instruments such as futures and forward contracts, ...

Derivative value depends on the assets such as stocks, commodities, currency or indexes. These contracts are mostly applied in hedging, speculative trading, and to increase portfolio diversification.

Derivative markets serve important roles in the global financial system. While derivatives can be complex, they represent the modern day versions of practices that have been around for thousands of ...

Ben is the former Retirement and Investing Editor for Forbes Advisor. With two decades of business and finance journalism experience, Ben has covered breaking market news, written on equity markets ...

Investopedia contributors come from a range of backgrounds, and over 25 years there have been thousands of expert writers and editors who have contributed. Thomas J Catalano is a CFP and Registered ...