Derivatives

Derivatives

Derivatives (Derivatives)
Futures contract to buy/sell an asset in the future at a price fixed today
Options (Call, Put) the right (not obligation) to buy (Call) or sell (Put) an asset in the future
Swaps (Interest rate, Currency, Credit default) exchange of payments (for example, you pay a fixed %, receive a floating %)
Forwards like futures, but not on an exchange, directly between two parties
CFD (Contract for Difference) a contract where you earn on the price difference (leverage, high risk)
Swaptions the right in the future to enter into a swap (combination of option + swap)
Caps, Floors, Collars instruments that limit the maximum/minimum rate (protection from spikes)
Exotic options complex options with conditions (for example, start working only if the price reaches a certain level)
Weather derivatives contracts on weather (for example, insurance for a farm against drought)
Volatility derivatives trading the volatility of an asset, not the asset itself