Derivatives are investment contracts whose value is determined by the value of the underlying investment, such as an equity or equity index. Derivatives include options, futures and forward contracts.
With derivatives you can either hedge against changes in the value of the underlying investment or correspondingly benefit from these changes. Derivatives react very strongly to changes in the value of the underlying investment, and therefore their target returns and risk levels are high.
Due to the fact that derivatives are complex and non-standardised instruments, we recommend them only for investors who have high risk tolerance and are fully familiar with their characteristics.