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Investments & Financial Planning

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  4. In reference to the stock market , what is a Derivative ?

In reference to the stock market , what is a Derivative ?

Derivative instruments are financial contracts whose value is based on an underlying security, a currency exchange rate, an interest rate or a market index. Many types of instruments representing a wide range of potential risks and rewards are derivatives, including futures contracts, options on futures contracts, and forward currency contracts.

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