Derivatives derive its value from the assets underlying it. If this statement is correct than why derivatives market always trades on Margin and how Margins keeps the market safe as compared to the cash market. In the past few years various instruments have been derived and are termed derivatives, you need to explain any four such instruments or investment options which can be termed as derivatives by the market. Note you need to explain this to a lay man who has no knowledge of share market.

ENGR.ECONOMIC ANALYSIS
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ISBN:9780190931919
Author:NEWNAN
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Chapter1: Making Economics Decisions
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Derivatives derive its value from the assets underlying it. If this statement is correct than why derivatives market always trades on Margin and how Margins keeps the market safe as compared to the cash market. In the past few years various instruments have been derived and are termed derivatives, you need to explain any four such instruments or investment options which can be termed as derivatives by the market. Note you need to explain this to a lay man who has no knowledge of share market.
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