Skip to main content
market.news — Markets without borders
Markets

Derivatives

Financial instruments whose value derives from an underlying asset.

In depth

Includes options, futures, swaps, forwards, CFDs. Used for hedging and speculation. Derivatives notional values dwarf underlying markets — global derivatives are measured in hundreds of trillions of dollars. Central clearing has reduced (but not eliminated) systemic risk since 2008.

Frequently asked about Derivatives

What is Derivatives?

Financial instruments whose value derives from an underlying asset. Includes options, futures, swaps, forwards, CFDs. Used for hedging and speculation. Derivatives notional values dwarf underlying markets — global derivatives are measured in hundreds of trillions of dollars. Central clearing has reduced (but not eliminated) systemic risk since 2008.

Why does Derivatives matter for investors?

In markets, Derivatives is one of the building blocks investors use to compare opportunities and assess risk. Understanding it helps you read research notes, earnings reports, and market commentary without getting lost in jargon.

How is Derivatives used in practice?

Includes options, futures, swaps, forwards, CFDs. Used for hedging and speculation.

Recent news mentioning Derivatives

Gemini secures derivatives license, targets Kalshi and Polymarket

The Quick Take * Gemini (Winklevoss-owned crypto exchange) secured a regulated derivatives license, enabling expansion into derivatives and prediction markets * Gemini shares surged following the announcement, per CoinDesk reporting on April 30, 2026 * Move positions Gemini as a direct competitor to fast-growing prediction market platforms Kalshi and Polymarket * Gemini now holds licenses covering regulated derivatives and prediction markets — reportedly the fastest-growing sectors in crypt

May 2, 2026

Related terms

Options

Contracts giving the right (not obligation) to buy or sell an asset at a set price by a set date.

Futures

Standardized contracts to buy or sell an asset at a future date and price.

Looking for more financial terms?

Browse Full Glossary →