Global Derivatives Market

The global derivatives market is a financial space where traders buy and sell contracts called derivatives, which derive their value from underlying assets like stocks, bonds, currencies, or commodities. These contracts are used for hedging risks or speculating on price movements without owning the actual asset. The market enables participants worldwide to manage financial risks, enhance liquidity, and access investment strategies. It operates through exchanges and over-the-counter deals, making it a crucial component of the global financial system for balancing market stability and facilitating economic activity.