1. Home
  2. About Us
  3. Services
  4. Insights
  5. Contact us

Derivatives

How to apply

Derivatives, such as futures or options are financial contracts which derive their value from a spot price, which is called the “underlying”. For example, wheat farmers may wish to enter into a contract to sell their harvest at a future date to eliminate the risk of a change in prices by that date. Such a transaction would take place through a forward or futures market. This market is the “derivatives market” and the prices of this market would be driven by the spot market price of wheat which is the “underlying”. The term “contracts” is often applied to denote the specific traded instrument, whether it is a derivative contract in wheat, gold or equity shares. The world over derivatives are a key part of the financial system. The most important contract types are futures and options and the most important underlying markets are equity, treasury bills, commodities, foreign exchange and real estate.

You can call Molton Wealth Financial Services directly on +44 (0)20 3874 4495 or email and request a call back.

Get in touch with our team

Call us: +44 (0)20 3874 4495 Write to us: info@moltonwealth.co.uk

Molton Wealth Financial Services is a trading name of ABS Broker S.R.L. who is EEA authorised with FCA number 584368 and which is authorised and regulated by the Financial Conduct Authority and is also a member of the London International Financial Futures and Options Exchange. The information contained within this website is subject to the UK regulatory regime and is therefore targeted at consumers based in the UK.