Derivative Market is a financial market where derivative contracts like futures and options are traded, and their value is derived from underlying assets such as stocks, commodities, currencies, or indices.
The Derivative Market allows investors and traders to hedge risk, speculate on price movements, and manage exposure without directly owning the underlying asset.
These markets operate on exchanges like the National Stock Exchange and Bombay Stock Exchange, under the regulation of the Securities and Exchange Board of India.
"A trader buys a Nifty futures contract expecting the index to rise and profits from the price increase without owning stocks."