THE EVOLUTION OF FINANCIAL DERIVATES: HISTORICAL APPROACH

Abstract: The present paper aims to trace the historical evolution of derivative instruments, examining their development from ancient trading practices to their modern forms in today's financial markets. The analysis begins with the origins of derivatives in ancient civilizations, where early forms of forward contracts were utilized in agricultural economies. The review progresses to the modern days, detailing increasing complexity of derivatives such as options, futures and swaps. The methodology used in this article is represented by the systematic study of relevant articles published on the Web of Science platform. This comprehensive historical overview aims to provide to the current literature, a more detailed picture about the evolution and significance of derivative instruments in the financial world.