Why do investors prefer derivatives over underlying assets? - Dalal Street Investment Journal

A ‘derivative’ is a financial contract or a security with a price. Derivative contracts come in many different forms, such as forwards, futures, options, and swaps.

A ‘derivative’ is a financial contract or a security with a price. The value of a derivative contract is determined by the value of the underlying asset. Metals (gold, silver, aluminium, zinc), energ… [+1748 chars]

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