What is a financial instrument whose value is derived from the value of an underlying asset, such as a stock or commodity?
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4 Answers
A financial instrument whose value is derived from the value of an underlying asset is known as a derivative. Derivatives can be traded on various exchanges and OTC markets, allowing investors to bet on the future price movement of the underlying asset. Common types of derivatives include options, futures, and swaps.
The financial instrument you are referring to is called a derivative. A derivative is a contract that derives its value from an underlying asset, which can be a stock, commodity, bond, currency, or interest rate. Examples of derivatives include options, futures, swaps, and forwards. They are widely used by investors and traders for hedging, speculation, and arbitrage.
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2. Continuously pick respectable installment doors that you can trust.
3. Never wonder whether or not to decide on two-factor validation to add an additional layer of safety.
4. Consider utilizing virtual Visas to guarantee greatest insurance.
5. Use Mastercards with EMV chip innovation, which is a more secure choice than customary attractive stripe cards.
6. Routinely screen your assertions, and promptly report any dubious movement immediately.