derivativesbased
Derivatives-based refers to financial instruments or strategies that are derived from or based on the value of an underlying asset, index, or reference rate. These instruments, known as derivatives, include options, futures, swaps, and forward contracts. The value of a derivative is intrinsically linked to the price movements of the underlying asset, which can be stocks, bonds, commodities, currencies, interest rates, or market indices.
Derivatives-based instruments are used for various purposes, including hedging, speculation, and arbitrage. Hedging involves using derivatives
Derivatives-based strategies can be complex and involve a high degree of risk. They are often used by
Regulation of derivatives-based instruments varies by country and type of derivative. In the United States, for