What do you mean by Derivative?
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Answer:
A derivative is a contract between two parties which derives its value/price from an underlying asset. The most common types of derivatives are futures, options, forwards and swaps.
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Definition: A derivative is a contract between two parties which derives its value/price from an underlying asset. The most common types of derivatives are futures, options, forwards and swaps. ... Generally stocks, bonds, currency, commodities and interest rates form the underlying asset.
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