ELI5: Explain Like I'm 5

Equity derivative

Equity derivatives are a type of investment. They're like a bet on a stock. You're betting that the price of a certain stock will go up or down in the future. So if the stock goes up in value, you can make money. But if the stock goes down in value, you could lose money. Equity derivatives are a way to potentially make money in the stock market but they can also be risky.