The Derivatives Market is a financial marketplace where contracts known as derivatives are traded. These contracts derive their value from an underlying asset, such as stocks, bonds, commodities, or currencies. Common types of derivatives include options and futures, which allow investors to speculate on price movements or hedge against potential losses. Participants in the derivatives market include individual investors, institutional investors, and companies looking to manage risk. By using derivatives, they can protect themselves from price fluctuations or leverage their investments for potentially higher returns. This market plays a crucial role in the overall financial system by providing liquidity and price discovery.