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What is Derivatives?

April 26, 2017derivatives

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What is Derivatives?

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Futures can be defined as derivative contracts based on an underlying asset or assets and the holder of the contract is entitled to purchase a specified quantity of the asset on a future date at the predetermined price. On the other side, the seller of the contract is under obligation to sell the agreed quantity of the asset in question as per the contract terms such as price, time etc.