The document discusses derivatives, futures contracts, forward contracts, and hedge funds. It begins by explaining that derivatives are financial instruments whose value is based on an underlying asset such as stocks, currencies, or commodities. The document then compares and contrasts futures contracts and forward contracts, noting that futures are traded on exchanges while forwards are customized over-the-counter agreements. It also defines hedge funds as investment funds that are not constrained in the same way as mutual funds and can employ complex trading strategies.