Exchange-traded derivatives are listed on exchanges, such as the Cboe Global Markets (Cboe) or New York Mercantile Exchange (NYMEX), and overseen by regulators, like the U.S. Securities and ...

Underlying assets give derivatives their value. For example, an option on stock XYZ gives the holder the right to buy or sell XYZ at the strike price up until expiration.

Discover the essential differences between shares and derivatives, and learn how to effectively use these financial instruments to achieve your investment goals.