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What are derivatives?

A derivative is a derived product

Derivatives are often used in the investor World: it gives the buyer the right to buy or sell something for a certain price. Examples of derivatives are: options, (agricultural) term contracts, commodities, warrants, etc. The value of a derivative depends on its underlying value, such as the value of a share, or a foreign currency.

Clear explanation of a derivative [YouTube] VUKDiuhU8mU [/youtube]

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