Derivatives are the most important tools in the financial markets in the present days. They are working for reducing the risk for business corporate. The basic purpose of these instruments is to provide commitments to prices for future dates for giving protection against adverse movements in future prices, in order to reduce the extent of financial risks. Derivative markets were novel until the 1970s. However, with the breakdown of Bretton Woods system in 1973, there was a sudden increase in the volatility of exchange rates and interest rates thereby making it necessary for firms and investors to find ways to reduce these risks. There is a need of proper training and orientation programmes are required to increase the growth of derivatives in India.