Derivatives

byPaytm Editorial TeamLast Updated: December 29, 2025

Meaning & Definition

Derivatives are financial contracts whose value depends on an underlying asset like shares, commodities, or currencies. They are used for hedging and trading.

Key Points

  • Based on underlying assets
  • Includes futures and options
  • Used for risk management
  • Higher risk instruments

Author

Paytm Editorial Team

The Paytm Editorial Team is a collaborative group of writers, editors, and industry experts. We're dedicated to bringing you the latest insights, news, and guides on digital payments, financial services, and the technology that's shaping India's economy. We offer easy-to-follow guides and insights to help you explore Paytm’s products, features, and services. Our goal is to provide clear, reliable, and helpful information to empower you on your financial journey.

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