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Trading Terms

Derivatives Market

The Derivatives Market is a crucial component of the financial world, where financial instruments such as futures contracts and options are traded. These instruments derive their value from underlying assets, making them highly dynamic and complex. It is important to note that only Futures and Options (F&O) are legally traded on exchanges, while other derivatives are traded on the Over-the-counter (OTC) Market. Understanding the intricacies of this market is essential for any finance professional.

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