Derivative Market

The financial market for derivatives is known as the derivative market. The derivative market has two parts:

Exchange Traded Derivatives

Over-the-Counter derivatives.

The exchange traded derivatives are the futures and options. The futures are standardized derivative contracts. The Euronext.liffe and the Chicago Mercantile Exchange are some derivative markets, to name a few.

The Over- the- Counter derivatives

The derivatives traded over the counter are known as the over the counter derivative market. The Over the counter derivative market consists of the investment banks and include clients like hedge funds, commercial banks, government sponsored enterprises etc. The products that are traded over the counter are swaps, forward rate agreements, forward contracts, credit derivatives etc.

Derivatives are basically the financial instruments whose value is a function of the value of the underlying asset. The participants who enter into the contract do so when they agree on the exchange rate or the value of some asset to be delivered on a future date.

We may browse through the following links to have a more detailed idea of the derivative market.

Derivative Market Credit

Derivatives Market



Derivative Market Equity
Derivative market equity can be defined as the financial instruments like futures, options and swaps. Get detailed on Derivative market equity:



Derivatives Market Growth
Larger participation of the bankers, investors

and financial companies has resulted an overall growth in the derivative market. Get more on derivative market growth:



Derivative Market Size
Find the market size of the derivatives over the world. Derivative market is simply meant as the financial market

dealing with the derivatives.