Write the meaning of derivative securities.

Derivative securities are financial instruments whose value is derived from an underlying asset, index, or security. They are contracts between two or more parties, whose value is based on the performance of the underlying asset. Unlike primary securities (e.g., stocks or bonds), derivatives do not have intrinsic value but derive their worth from the price movements of the underlying asset. Common types include futures, options, swaps, and forwards. These instruments are used for hedging risks, speculation, or arbitrage. Derivatives allow investors to manage exposure to market fluctuations without directly owning the underlying asset. Their value is influenced by factors such as time, volatility, and interest rates.