What is derivatives market?



Derivatives are tradable products that are based upon another market. This other market is known as the underlying market. Derivatives markets can be based upon almost any underlying market, including individual stocks
Types of Derivative market
  • Future market
  • Options market
  • Contract for difference
Futures
A futures contract is an agreement between a buyer to exchange money for the underlying, at some future date.
Options
Options are another popular derivatives market. Options can be very complex or simple, depending on how you choose to trade them.
Contract for Difference (CFD)
Contract for difference (CFD) markets are offered by various brokers, and therefore may differ from one broker to another.If you believe the underlying asset will decline in value, then you sell or short the CFD. Your profit or loss is the difference between the prices you enter and exit the trade at.
If you want to generate good returns on your investment by trading commodities, a more suitable option would be to opt for a Commodities Trading Account with a nationalized Stock Broker & start trading in Basemetal, Bullion & Energy Segment which are traded on many global exchanges. I would suggest KheloMCX, Best tip provider company in India.
(Source : https://www.quora.com/What-is-derivatives-market)

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