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Tim Bennett explains what derivatives are, and how you can use them to your advantage.
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Derivative
As such, they can be used either to gamble or to reduce the risk of ('hedge') an investment in the underlying security. Examples of derivatives are futures, options and swaps. For instance, an option is a derivative because its value changes in relation to the performance of an underlying stock.
Entry from MoneyWeek's Financial glossary.
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BBC TV licence fee hike confirmed: can you reduce how much you pay?The cost of a TV licence fee is set to rise by over 3%, but there are ways to reduce the bill.
