A derivative is a joint contract in which the economic value is determined in terms of its time value based on the underlying asset as a citerion. The underlying asset can be a finacial security, a finacil value or a physical value.

It is considered that derivatives increment the proficiency of financial markets. By utilizing derivative contracts, one can reproduce the result of the resources. Along these lines, the costs of the fundamental resource and the associated derivative will in general be in equilibrium to stay away from exchange.