A derivative contract is a contract to buy or sell a number of shares of a stock, loan, index or other asset at a given time. The amount paid in advance represents a fraction of the value of the underlying asset. Meanwhile, the value of the contract varies with the price of the underlying. Due to the high risk of losses on both sides, derivatives traders typically provide collateral as a credit medium for their trades. In addition to the isda framework contract, it is also possible to conclude a credit carrier annex („CSA“) which is a legal document regulating the guarantees allowed for derivatives transactions. It is an essential element of trade relations in the trade in derivatives and currencies, but it is not mandatory.