If you're familiar with or invest in exchange-traded funds, it's likely you've heard of derivatives ETFs, a category of ETFs that use derivative instruments such as futures and forward contracts, ...

Learn what financial instruments are, explore major types and asset classes, and understand how they work in investing, trading, and portfolio construction.

Paid non-client promotion: Affiliate links for the products on this page are from partners that compensate us (see our advertiser disclosure with our list of partners for more details). However, our ...

Derivatives are financial instruments that you can find in the markets. They have grown in popularity ever since their original introduction to the world. But what are the derivative financial ...

The derivatives market doesn’t deal with fungible assets. Instead, it’s a secondary market focused on the volatility of capital markets and assets. As the name implies, the financial products traded ...

Derivatives offer a tool to mitigate financial risk by hedging against adverse price movements. Investors use derivatives to control large asset amounts with minimal investments, amplifying gains but ...

Scholes for options to futures spot pricing. Understand pricing mechanisms for better financial decision-making.

Ben is the former Retirement and Investing Editor for Forbes Advisor. With two decades of business and finance journalism experience, Ben has covered breaking market news, written on equity markets ...

Hedge documentation is important in both financial reporting and income taxation.For financial accounting purposes, on the date of the hedge, an entity must identify the hedged item, the instrument ...

“Derivatives” generally may be defined as instruments and contracts that have a value that is based upon, or derived from, an asset or other metric. Derivatives may be either exchange-traded, such as ...