Derivative
In Article 1 (3) of the Republic of Indonesia Financial Services Authority Regulation Number 32 /Pojk.04/2020 concerning Securities Derivative Contracts. A Securities Derivative Contract is a contract that gives or creates rights and/or obligations for the Parties to buy or sell a principal amount at a certain price and time. The underlying is the Securities, Securities index, Stock exchange, or Securities stock index which is the basis for Securities Derivative Contract transactions.
In a more specific sense, a derivative is a financial contract between 2 (two) or more parties to fulfill a promise to buy or sell an asset/commodity that is used as a traded object at a time and price that is a mutual agreement between the seller and the buyer. The future value of the offering object is greatly influenced by the parent instrument on the spot market.