The most common derivatives found in exchange-traded funds are futures, which are used particularly often in commodity ETFs so that actual physical commodities don't have to be taken possession of and stored. But ETFs also utilize forwards, swaps, and options (calls and puts). Derivatives meaning – Forward, Futures, Option & Swap Explained Derivatives meaning. A derivative is a financial instrument that derives its value/ price from Forward. A forward contract is a contract between two parties to buy/ sell an asset on Futures. Futures are similar to a forward Options, swaps, futures, MBSs, CDOs, and other derivatives. Lessons. Put and call options. Forward and futures contracts. Mortgage-backed securities. Collateralized debt obligations. Credit default swaps. Interest rate swaps. Black-Scholes formula. Put and call options. Learn. American call options