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Products which are used to protect investors from risks or to increase revenue by taking risk at a specific level are called derivative products in financial markets. Their typical feature is volatility in value due to price fluctuations in spot markets.
Major Derivative Products:
Forward
Swap
Options
Futures
Structured Products
It is possible to create more profitable products with different structures by grouping different combinations, thus eliminating specific risks or making some predictions (especially by means of options).
Forward:
Basically, it is an agreement made today with the purpose of fixing the exchange rate of a future date. >>
Options:
Basically, options can be defined as instruments which entitle you to sell or buy an asset on an agreed-upon date. >>
Structured Products:
These are products which allow one of the forward, options and exotic options contracts, or more than one of them to be used at the same time. >>
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