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What's a derivative?

帮考网校2020-10-13 11:49:21
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A derivative is a financial instrument that derives its value from an underlying asset or security. It is a contract between two parties that specifies the conditions under which payments will be made between them based on the value of the underlying asset. Derivatives can be used for hedging, speculation, or arbitrage purposes. Examples of derivatives include options, futures, swaps, and forwards.
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