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DIFFERENT TYPES OF

DERIVATIVES
JUDE ROBERT GALIDO

FORWARD
Customizeable contract between two parties to
buy or sell an asset at a specified price on a
future date.

FUTURES
Legal agreement to buy or sell a particular
commodity asset, or security at a
predetermined price at a specified time in the
future.

OPTIONS
Contract which gives an investor a right to
either buy or sell an asset at a predetermined
price by a specific date.

SWAP
Contract through which two parties exchange
the cash flows or liabilities from two different
financial instruments.

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