Derivatives are financial instruments whose ... and they represent new shares, meaning that if an investor exercises one, the shares they buy from the company add to that company's total ...

It's important to understand what derivatives are, how they work, and the risks before getting involved. Definition of a derivative A derivative is a contract that has a value that's derived from ...

Derivatives are a kind of financial security ... allows traders to put up a fraction of the money for a contract, meaning ...

Occasionally, derivatives provide arbitrage opportunities, meaning that you can take advantage of pricing differences between different markets to essentially lock in risk-free profit. For example ...