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Derivatives

Derivatives

Derivatives are financial instruments whose price is derived from the actual or supposed cost of one or several base assets. Where the assets are several, the price can be derived from bonds, options, shares or futures contracts. Derivatives are often used to hedge risks and can also be used when speculating. Leverage is used to purchase these instruments, allowing them to be bought at a price which is much higher than the funds that the investor has.

Derivatives

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