Derivative means an instrument, to be settled  at a future date, whose value is derived from change in interest rate, foreign exchange rate, credit rating or credit index, price of securities (also called “underlying”), or a  combination of more than one of them.

Futures contracts, forward contracts, options and swaps are the most shared categories of derivatives. Because derivatives are just contracts, just about anything can be used as an underlying asset.

Derivatives are mostly used to hedge risk, but can also be used for speculative purposes.

Citizens Treasury team has limited range of derivatives products for its corporate customers which are related to Foreign Exchange are as follows

• SWAPS
• Forwards