The history of financial derivatives

start exploring

A derivative is a contract whose value is derived from something else (an underlying asset). Popular derivatives include forwards, futures, options, and swaps. .

What is Derivative?

In Sumer, Mesopotamia, clay token used as a promise to a counterparty to deliver a quantity of goods by a certain date..

Derivatives have a long history dating back 10,000 years. 
.

In Middle Ages entrepreneurs negotiated for ventures, forwards, futures, and options continued to evolve.

The Greek philosopher Thales negotiated one of the first put options in the 500s B.C.

 Derivatives Medieval Europe

The markets operated over-the-counter derivatives, with trade taking place primarily between the buyer and seller without the use of a formalized exchange. .

The East established its own market in Osaka, Japan, with the country's most important commodity: rice. .

Derivatives in Japan

In the 1800s, in the United States, agricultural demand required the establishment of a Chicago Trade Board by a solid trade contract. 
.

Derivatives in U.S.A

Click Here