An Exchange-Traded Derivative (ETD) is a financial contract whose value is derived from the price of an underlying asset, index, or interest rate. These derivatives are traded on organized exchanges, providing a standardized and regulated platform for buying and selling these financial instruments. ETDs include futures contracts and options contracts, among other instruments.

Here are key points about Exchange-Traded Derivatives:

1. **Standardization:** ETDs are standardized contracts with predefined terms, including the underlying asset, contract size, expiration date, and other specifications. This standardization facilitates liquidity and transparency in the marketplace.

2. **Organized Exchanges:** ETDs are traded on organized exchanges, such as the Chicago Mercantile Exchange (CME), Eurex, or the Intercontinental Exchange (ICE). These exchanges act as intermediaries, providing a platform for buyers and sellers to transact in a regulated environment.

3. **Futures Contracts:** Futures contracts are a type of ETD where parties agree to buy or sell an asset at a predetermined price on a specified future date. Futures contracts are used for hedging, speculation, and investment purposes.

4. **Options Contracts:** Options contracts give the holder the right (but not the obligation) to buy or sell an asset at a predetermined price within a specified time frame. Options can be used for hedging against price movements or for speculative trading.

5. **Margin Requirements:** When trading ETDs, traders are often required to deposit a margin with the exchange. This margin serves as collateral and helps ensure that both parties fulfill their contractual obligations.

6. **Mark-to-Market:** ETDs are marked-to-market regularly, meaning that the value of the contract is adjusted based on the current market price of the underlying asset. Profits and losses are realized and settled daily.

7. **Liquidity:** ETDs are generally more liquid than over-the-counter (OTC) derivatives because they are traded on organized exchanges. The standardized nature of these contracts makes them easily tradable.

8. **Clearinghouse:** ETD transactions are typically cleared through a central clearinghouse. The clearinghouse acts as a counterparty to both the buyer and the seller, reducing counterparty risk. It also ensures the financial integrity of the market.

9. **Publicly Available Prices:** Prices of ETDs are publicly available and are often reported in real-time. This transparency allows market participants to make informed trading decisions.

10. **Accessibility:** ETDs are accessible to a broad range of market participants, including institutional investors, retail traders, and speculators. Investors can gain exposure to various asset classes, including commodities, currencies, interest rates, and stock indices.

Exchange-Traded Derivatives play a crucial role in financial markets by providing participants with tools to manage risk, speculate on price movements, and gain exposure to different asset classes. They are an integral part of a diversified investment and risk management strategy for many market participants.