In the stock market, a derivative is a financial contract between two or more parties that derives its value from an underlying asset such as stocks, bonds, commodities, currencies, interest rates, and market indexes. Derivatives are used to access specific markets and trade different assets, and they can be used to hedge a position, speculate on the directional movement of an underlying asset, or give leverage to holdings. The most common types of derivatives are futures, options, forwards, and swaps. Derivatives can be traded on exchanges or over-the-counter (OTC) and are purchased through brokerages. Derivative trading is a leveraged form of trading, meaning that investors can buy a large quantity of the underlying assets by paying a small amount. The expiry date of a derivative contract is fixed and predetermined. Derivatives can be a very convenient way to achieve financial goals, such as hedging against exposure to commodities. The derivatives market is one that continues to grow, offering products to fit nearly any need or risk tolerance.