Types of listed products:
What is a derivative?
Derivatives are financial instruments whose value is derived from underlying assets, such as shares, fixed income securities, indices, commodities and currencies.
A derivative’s profitability is based on whether the value of the underlying asset increases or decreases by a specific date.
The most commonly used derivatives are:
|Futures||A contract to receive or deliver an asset on a designated date at an agreed price.
A futures contract allows the holder to fix a price today for something they want to buy or sell in the future.
|Options||A contract between two parties in which one party has the right, but not the obligation, to buy or sell an asset at a set price within an agreed time frame.|
|Warrants||A product that gives the holder the right to buy, sell or cash settle the underlying instrument with the warrant issuer for a specific price at a specific time, as detailed in the terms of issue.|
|Contracts for Difference (CFDs)||A leveraged instrument that provides exposure to shares, indices, commodities and currencies with the potential to take advantage of rising and falling markets.|