Question

what are derivatives ??

Answer 1

Derivatives are contracts whose value depends on the value of underlying asset. The underlying asset can be stock,bonds, currencies,index etc. The are three types od derivatives
basically,futures, Options and swaps. For details on these you can check out www.investopedia.com.

Answer 2

Forwards are derivative to, but are basically the same as futures, however is important to distinguish their differences.

Answer 3

anything which derives its value from other assets