Glossary

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Derivative financial market

Some investors and companies seek ways of hedging their invested capital (diversification) on the derivative financial market while others seek investments involving a high degree of risk that offer high returns and leverage. Derivatives are financial instruments whose prices depend on underlyings such as shares, bonds, funds, interest rates and indices as well as even non-economic values such as the weather.

See alsoCall optionPut optionFutures
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