What is the meaning of Derivative?

Derivative-

The valuation of main assets are based on underlying assets is known as Derivative.

The derivative market 4 parts-

1. Spot market- It means where delivery of payment and settlement of transfer occur on spot.
2. Forward market- `It is a market in which transaction execute after a particular a period of time.
3. Future and option- It is market in which transaction execute after and depend on parties to execute the transaction.