Definition of a derivative A derivative is a contract that ... Types of derivatives There are many types of derivatives, some of which trade OTC (e.g., directly between two banks), while some ...

Some derivative securities are traded both on public exchanges and privately on the over-the-counter market, while others only trade on one or the other. For example, standardized options are ...

Derivatives are a kind of ... forwards are non-standardized, trade over the counter and are not cleared by a central ...

Financial derivatives enable parties to trade specific financial risks (such as interest rate risk, currency, equity and commodity price risk, and credit risk, etc.) to other entities who are more ...

Occasionally, derivatives provide arbitrage opportunities, meaning that you can take advantage ... especially because if you inaccurately trade based on what you think is an arbitrage opportunity ...