Browse Financial Instruments

Derivatives

Financial-instrument terms for options, futures, forwards, swaps, credit derivatives, underlyings, and payoff structures.

Derivatives is the financial-instruments landing page for options, futures, forwards, swaps, credit derivatives, structured products, underlyings, hedging terms, payoff structures, and valuation inputs. It keeps related terms in one branch so readers can move from a broad instrument question to the article that owns the contract evidence.

Use this page when a contract derives value from an underlying asset, rate, index, credit event, volatility measure, or other reference. Use the parent Financial Instruments page when you need the broader instrument map. For an individual decision, confirm the contract, term sheet, prospectus, confirmation, exchange specification, or disclosure record before relying on the term.

Use the table below to choose the branch that matches the instrument type, payoff feature, settlement term, or risk exposure being reviewed.

What This Branch Covers

BranchUse it for
Derivative Instruments and Contract StructuresGeneral derivative instrument, equity-linked, asset-swap, weather derivative, and contract-structure terms.
Derivative Risk, Hedging, and UnderlyingsDerivative notional, underlying asset, hedge-ratio, hedging transaction, and exposure-transfer terms.
Futures, Forwards, and ContractsFutures, forwards, delivery, contango, futures options, index futures, financial futures, and forward-pricing terms.
Option Pricing, Greeks, and VolatilityDerivative pricing, option Greeks, volatility surface, time decay, and option-model terms.
Option Strategies, Spreads, and WritingOption spread, collar, strangle, covered-position, naked-writing, hedging, and multi-leg strategy terms.
Options Contracts and Exercise FeaturesOption-contract terms for rights, exercise, expiration, moneyness, contract styles, warrants, and option-linked underlyings.
Structured Credit and Synthetic ProductsCDO, CDX, loan credit-default swap, single-name CDS, and synthetic credit-product terms.
Swaps, Rates, and Credit DerivativesSwap, interest-rate derivative, credit derivative, currency swap, total-return, variance, and inflation-swap terms.

Example in Use

A futures contract can hedge a price exposure, while an option creates asymmetric exposure because the holder has a right rather than a delivery obligation.

What to Check

  • Underlying reference, payoff formula, notional amount, maturity, settlement method, and contract venue.
  • Margin, collateral, clearing, counterparty, liquidity, and documentation terms.
  • Pricing input, volatility, rate, credit spread, basis, Greeks, and hedge ratio.
  • Effect on leverage, cash-flow timing, hedge effectiveness, counterparty risk, and scenario loss.

Common Mistakes

  • Treating derivatives as one risk type instead of contract-specific payoff and exposure structures.
  • Ignoring margin calls, liquidity, collateral, and counterparty credit risk.
  • Using derivative terminology as personalized investment, tax, legal, or securities advice.

Derivatives content is educational and does not provide personalized investment, tax, legal, accounting, valuation, derivatives, or securities advice.

In this section

Choose a subsection first. Deeper term pages live inside each subsection, which keeps large topic hubs readable.

Futures & Forwards

Futures, forwards, delivery, contango, futures options, index futures, financial futures, and forward-pricing terms.

Option Strategies

Option spread, collar, strangle, covered-position, naked-writing, hedging, and multi-leg strategy terms.

Options Contracts

Option-contract terms for rights, exercise, expiration, moneyness, contract styles, warrants, and option-linked underlyings.

Swaps & Credit Derivatives

Swap, interest-rate derivative, credit derivative, currency swap, total-return, variance, and inflation-swap terms.

Revised on Sunday, June 21, 2026