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Q » What are derivatives and their types?
06 Dec, 2025
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A » Derivatives are financial contracts whose value is derived from underlying assets such as stocks, bonds, commodities, or currencies. They are used for hedging risks or speculating on price movements. Common types of derivatives include futures, options, forwards, and swaps. Futures and forwards are agreements to buy or sell assets at a future date, options grant rights without obligations, and swaps involve exchanging cash flows or financial instruments between parties.
06 Dec, 2025
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