Derivative

There are several types of derivatives, the most common ones are mathematical derivative and a financial derivative, if you wonder what type of derivative we are about to talk about here; we are talking about a financial derivative. A true definition of a financial derivative is an unreal or un-true agreement or exchange of services, a derivative does not involve a valuable goods like money, products, and Goods , it is basically a way of trading substance or time for a favor. A good example will be have someone do you a favor or exchanging favor that benefit both party, something like say you have a room mate and you tell your room mate to help wait at home to receive a parcel for you and you offer to help him pick up his food that he ordered at a Chinese restaurant. now that you have read about derivative we hope that you don't get it mixed up with the mathematical derivative.