Why do investors prefer derivatives over underlying assets? Why do investors prefer derivatives over underlying assets? A ‘derivative’ is a financial contract or a security with a price. Derivative contracts come in many different forms, such as forwards, futures, options, and swaps. Mandar Wagh / Friday, August 12, 2022 0 1242 Article rating: 4.9 A ‘derivative’ is a financial contract or a security with a price. Derivative contracts come in many different forms, such as forwards, futures, options, and swaps. Read more