👉 A contract weapon is a type of derivative financial instrument whose value is directly tied to the performance of an underlying asset, often with a specific maturity date. Unlike other derivatives, contract weapons are typically standardized and traded on exchanges, making them more liquid and regulated. They can be structured in various ways, such as options or futures contracts, and often have predetermined payouts based on the performance of the underlying asset. In essence, a contract weapon allows investors to speculate on or hedge against the future performance of an asset without directly owning it, providing a mechanism for risk management or profit-taking based on market movements.
