Derivative(s) - A derivative is a financial instrument that "derives" its value from the intrinsic value and/or change in value of an underlying asset. Examples of derivative trading instruments are - call options, put options, interest rate swaps, futures contracts, swaptions, etc....

Derivatives are used by sophisticated investors to maximize cash returns and/or minimize negative exposure to uncertain price movements in the underlying asset. They can also be used by best weight loss pills corporations to manage and control commodity supply cost and the sensitivity of net cash flow to changes in variables like interest rates, commodity prices, liquidity, etc,.

They are becomming increasingly popular as tools to transfer ownership risks.

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