Financial derivatives came into existence in the post-1970. Now currency, debt and equity based derivatives are popular globally. Introduction of derivatives marked a significant development in the history of capital market. However, since the inception of derivatives, issues related to asset pricing, volatility, information flow etc. gained attention from researchers and professionals. Derivatives products despite all its advantages, is widely criticized for market instability even during the current financial crisis. Theoretically, derivatives would add advantages for investors, businesses and economy, provided they are correctly priced and used. Research on impact of derivatives on the underlying market has been undertaken and the conclusions are market and time specific. In Indian, derivatives started in June 2000. As an emerging economy, Indian market has distinct features especially in its regulatory system. Though its newness, volume of derivatives has surpassed that of the spot market. This book is an interesting presentation of market behavior with the inception of derivatives. Market watchers, business students and analysts will benefit out of this book.