Risk of Investment Instruments of Derivative Type

The risk of instruments whose value depends on (is derived from) the price of the underlying asset. Some investment instruments use leverage, which in essence is a pre-agreed ratio (lever) at which the value of an investment instrument contributes to the growth or decline in the value/rate of the underlying asset. Even a small change in the price of the underlying asset may cause a significant change in the value of the entire investment or even a loss of the entire investment.