Derivatives are financial instruments whose value is derived from an underlying asset such as equities, commodities, currencies, interest rates, or market indices. In India, the derivatives market has witnessed robust growth and plays a pivotal role in risk management and price discovery. Common types of derivatives include futures, options, forwards, and swaps. These instruments are widely used by investors, traders, and institutions for hedging risks, speculative purposes, and arbitrage opportunities. The derivatives segment in India is primarily regulated by the Securities and Exchange Board of India (SEBI), ensuring transparency, investor protection, and systemic stability. While derivatives offer the advantage of leveraging positions and managing risk, they also come with complexities and potential for significant losses if used without a thorough understanding. Therefore, it is essential for investors to educate themselves and possibly seek professional advice before engaging in derivative contracts.