The derivatives market in India began in 2000 with the introduction of index future contracts. The total turnover increased substantially between 2001-2002 and 2006-2007. There are four main types of derivative instruments traded on Indian equity markets: index futures, index options, stock futures, and stock options. Index futures have the highest turnover. A derivative is a financial instrument whose value is based on an underlying asset such as a stock, commodity, currency, or index. The major derivative products are forwards, futures, options, and swaps.