This document provides an overview of derivatives, including their basic uses and types. It discusses how derivatives can be used to manage risk through hedging or change risk exposure. The main types of derivatives covered are forwards, futures, options, and swaps. Forwards and futures involve an agreement to buy or sell an asset at a future date. Options provide the right but not obligation to buy or sell an asset. Swaps involve exchanging cash flows over time, such as interest rates or currencies.