What is Derivatives in Forex Trading?

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Derivatives are kind of financial instruments that get their economic value from the price of asset used tracking them. The common assets used for its tracking include currencies, stocks, bonds, securities etc. The list of most popular derivatives includes futures, swaps, options and forwards. Investors mostly use derivatives for trading over the counter and heading their overall business risks. It can also be categorized as a financial contract that is linked with value of commodity and real estate.

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