Derivatives Market
/ˈdɛrɪvətɪvz ˈmɑrkɪt/
Definitions
- (n.) A financial market where derivative instruments such as futures, options, and swaps are traded, often for hedging or speculative purposes.
The derivatives market allows investors to manage risk by trading contracts based on underlying assets.
Forms
- derivatives market
Related terms
See also
Commentary
The term refers specifically to markets dealing in derivative financial products rather than the underlying assets themselves; precision in defining the instruments traded is important in legal contexts.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.