A derivative¹ is a financial instrument whose value depends on the price of an underlying² instrument, such as currencies, commodities or securities. Common examples of derivatives³ include swaps⁴, options, futures⁵ and FRAs. These particular types of derivatives are called over-the-counter （OTC） derivatives and futures in particular are traded on an exchange. In terms of options, the most common are called put （sell） and call （buy） options. Swaps on the other hand, come in many different forms. The most common forms include interest-rate swaps, currency swaps and credit swaps.