1. Derivatives refers to a term which means in a layman language that it is an asset which has no independent value.
2. It derives its value from that of an underlying asset and it may range from securities, bullion, commodities, bullion, currency, livestock etc.
3. One can in a layman can understand it from a fact that petrol is a derivative of oil and thus the price of petrol depends on price of oil which is in turn effected by virtue of a fulcrum created between the demand and supply gap.
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2. It derives its value from that of an underlying asset and it may range from securities, bullion, commodities, bullion, currency, livestock etc.
3. One can in a layman can understand it from a fact that petrol is a derivative of oil and thus the price of petrol depends on price of oil which is in turn effected by virtue of a fulcrum created between the demand and supply gap.
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