Click on the link below to read an article about why investors might want to use derivatives.
Watch the video below from the movie Capitalism - A Love Story
Derivative Definition
In finance, a derivative is a special type of contract which derives its value from the performance of an underlying entity. This underlying entity can be an asset, index, or interest rate, and is often called the "underlying". Derivatives can be used for a number of purposes - including insuring against price movements (hedging), increasing exposure to price movements for speculation or getting access to otherwise hard to trade assets or markets. (Wikipedia)