Afleiðusamningurinn

Afleiðusamningurinn, or derivative contract, is a financial agreement whose value is derived from an underlying asset, group of assets, or benchmark. These underlying assets can include stocks, bonds, commodities, currencies, interest rates, or market indexes. Derivative contracts themselves are not assets but rather instruments that allow parties to trade the future performance of an asset.

The primary purposes of engaging in derivative contracts include hedging and speculation. Hedging involves using derivatives to mitigate risk. For example, a farmer might use futures contracts to lock in a price for their crops, protecting them from potential price drops. Speculation, on the other hand, involves betting on the future direction of an asset's price. Traders use derivatives to profit from anticipated price movements.

Common types of derivative contracts include futures, options, forwards, and swaps. Futures contracts obligate the buyer to purchase and the seller to sell an asset at a predetermined price on a future date. Options give the buyer the right, but not the obligation, to buy or sell an asset at a specific price within a certain timeframe. Forwards are similar to futures but are typically customized and traded over-the-counter. Swaps involve the exchange of cash flows between two parties.

The use of derivatives can introduce complexity and potential risks, including counterparty risk and market risk. Regulation of derivative markets aims to ensure transparency and stability.