derivatives contracts

**Derivatives Contracts**

Derivatives contracts are financial agreements whose value is derived from the performance of underlying assets such as stocks, bonds, commodities, currencies, interest rates, or market indexes. Common types of derivatives include futures, options, forwards, and swaps. These contracts are widely used for hedging risks, speculating on price movements, and arbitrage opportunities in various financial markets. Understanding derivatives contracts is essential for investors, traders, and businesses aiming to manage financial exposure effectively.