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What are derivatives? How can derivatives be used to reduce risk? Can derivatives be used to...

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Finance

What are derivatives? How can derivatives be used to reducerisk? Can derivatives be used to increase
risk? Explain

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4.4 Ratings (788 Votes)
A derivative is a security that derives its value from an underlying asset The asset can be equity or commodity Some of the common derivative instruments are Futures Options Swaps A derivative is used    See Answer
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