Derivatives
Derivatives come in many different forms, but they all have one thing in common - they 'derive' value from something else. A derivative can derive its value from almost anything you can imagine, but commonly you will find derivatives for stocks or commodities.
In many cases, derivatives offer traders the advantage of leverage. This means investors can gain access to a large amount of product with a minimal initial outlay, and it allows for both greater potential gains and losses.
You can find information here on the following commonly traded derivatives:
These derivatives are all traded on the Australian stock exchange, and each of them has their own specific uses, benefits, risks and rewards. It's important to appreciate the specific intricacies of each trading vehicle before making any financial commitment, so take the time to research and understand derivatives.