Financial Product Knowledge

A derivative is a financial instrument whose price is based on the price of an underlying asset. The derivatives market is the financial market for trading derivatives. It is a very important part of the global financial markets. The main purpose of derivatives is to get leverage. It can be used for hedging, risk-managing, arbitraging and speculating.

Typical derivative markets are fixed income market, interest rate market, foreign exchange market, equity market, commodity market and credit market.

Derivatives are difficult to value because they rely on the performance of another entity. In fact, pricing derivatives and securities is one of the most complex and challenging tasks encountered in the markets.

We provide knowledge for the following most heavily traded securities and derivatives.