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Derivatives market products

Derivatives market productsTrade the benchmarks and hedge the future

The segment of an exchange in which derivatives, and in particular futures and options, are traded.

An option is a standardised contract between two parties. The buyer of an option purchases against payment of the option price (premium) the right to buy (call) or sell (put) a defined amount of a certain financial product at an agreed price within a certain period of time or on a specific date in the future.
A future is a standardised contract between two parties. The parties agree to exchange a defined quantity of an underlying asset at an agreed price at a fixed point of time in the future.

Derivatives are contracts that derive their value from the performance of an underlying entity such as an asset, index, or interest rate, and is often simply called the "underlying". Derivatives can be used for a number of purposes, including insuring against price movements (hedging), increasing exposure to price movements for speculation or getting access to otherwise hard-to-trade assets or markets.

Volatility derivatives

Eurex Exchange

Volatility measures the risk of a security. It is used in option pricing formulae to measure the fluctuations in the returns of the underlying assets. Volatility indices are therefore a measure of expected stock market volatility, over a specified time period, conveyed by the prices of stock/index options. They depict the collective sentiment of the market on the implied future volatility. Eurex offers derivatives on the VSTOXX® to take a view on the implied volatility, whereas Eurex Variance Futures (EVAR) represent a very clean way to express views on the realized movement.