Derivatives market

The derivatives market is a segment of the financial market where financial instruments known as "derivatives" are traded. Here's a concise definition:  

A derivatives market is a marketplace where contracts derive their value from an underlying asset, group of assets, or benchmark.   Here's a breakdown of what that means:

Underlying Asset: This can be anything from stocks, bonds, commodities (like oil or gold), currencies, or even interest rates.   Derived Value: The value of a derivative contract is directly linked to the fluctuations in the price of this underlying asset.   Contracts: Derivatives are essentially contracts between two or more parties that specify certain conditions and obligations.   In simpler terms, it's a market where people trade contracts that bet on or protect against the future value of something else