Derivatives (Futures & Options) are ideal instruments to protect your portfolio against risk. You can trade with index movements, hedge and leverage your portfolio by limiting risk but keeping your upside unlimited.Derivative products initially emerged as hedging devices against fluctuations in commodity prices and commodity-linked derivatives remained the sole form of such products for almost three hundred years. Derivatives are contracts for future delivery of assets at prices agreed at the time of the contract. The quantity and quality of the asset is specified in the contract. The buyer of the asset will make the cash payment at the time of delivery. Derivatives are instruments through which risk is transferred. There are various kinds of derivative instruments viz. index futures, stock futures, options, forward contracts, etc.