What is derivatives market?



The derivative is a contract between two or more parties based upon the assets. Its price is determined by fluctuations in the underlying asset such as stocks, bonds, commodities, market indexes etc.

There are many types of derivatives markets, each covering numerous of separate derivatives which can be traded. There are three main markets that most traders use:


  • Futures Markets
  • Options Markets
  • Contract For Difference (CFD) Markets

Traders trade according to their preferences based on requirements like profit margin, capital etc mostly in these 3 types of market. So, if you are new to market trading then there are many advisory firm like bazaar trading, 100mcxtips and many more. You can consult with them to enter and bloom in market trading.

(Source: https://www.quora.com/What-is-derivatives-market )


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