Trade Nivesh Determined Futures

The derivatives market refers to the financial market for financial instruments such as underlying assets and financial derivatives . There are four kinds of participants in a derivatives market : hedgers , speculators , arbitrageurs , and margin traders . There are four major types of derivative contracts : options , futures , forwards , and swaps . Market is meant as the market where exchange of derivatives takes place . Derivatives are one type of securities whose price is derived from the underlying assets . And value of these derivatives is determined by the fluctuations in the underlying assets . Since the value of the derivatives is linked to the value of the underlying asset , the contracts are primarily used for hedging risks . For example , an investor may purchase a derivative contract whose value moves in the opposite direction to the value of an asset the investor owns .