What is a derivatives market, the institutions operating and the benefits of its products?

 

The derivatives market is a financial instrument that provides a safe and effective risk management tools in commodity products and financial futures. It manages its exposure to the fluctuations in the options market, interest rates, stocks and stock index futures markets.
Malaysian derivatives market is the Malaysian Derivatives Exchange (MDEX), the result of a combination KLOFFE and COMMEX.

Benefits of derivative products are:

 (i) Provide facilities to investors who need an investment tool that is innovative and flexible and can take the opportunities of global markets;
 (ii) Offers above-average returns and portfolio protection to investors, and
 (iii) Offer facilities for hedging activities that can produce an efficient financing for the investment portfolio.