Derivatives are the financial instrument whose value is derived from underlying asset, here in underlying asset may be equity share, commodity, currency, interest rate.
In derivative the market participants are known as hedger, arbitrager and speculator. As the main purpose of derivative trading is to avoid future risk of price uncertainty.
In this article we will learn more words about Derivatives: https://medium.com/mark-price/derivatives-glossary-c249e69235b7
