CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing all your money. Read our full Risk Warning.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 77% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Derivate Markets

Definition of Derivate Markets

What are derivate markets?

Derivatives are contracts whose values are based on underlying assets, and are determined by the rise and fall of that underlying asset. Prime examples of this include futures contracts and Contracts for Difference (CFDs). Derivative markets are markets on which these derivatives can be traded. Most derivatives are traded over-the- counter (OTC), and are not regulated by government authorities, which means they are far riskier than the derivatives that are traded on regulated exchanges.

How do derivate markets affect forex traders?

The most commonly traded derivatives are futures contracts, in which the buyer and seller mutually agree on a price that reflects what they believe will be representative of the asset at a predetermined future date. Other derivatives include CFDs, forward contracts, options, and interest rate swaps.

Related to derivate markets
CFD
Derivative
Forward Contract
Futures Contract
Swap

Other Terms From - D -
Free Sign Up Now
Create demo account, practice risk-free with virtual money.