As the world economies become more interconnected, derivatives have emerged as crucial financial instruments for mitigating exposure. The adoption of derivatives is experiencing rapid growth on both national and international scales. The primary aim of this book is to evaluate the influence of financial derivatives, namely Stock Futures, Stock Options, Index Futures, and Index Options, on the volatility of the Indian stock market. The impact of financial derivatives on the National Stock Exchange (NSE) has been analyzed both pre and post their introduction. Out of the 13 industrial groups where derivatives trading is allowed, this study focuses on 10 of them. Sufficient empirical evidence has been presented in this study to demonstrate the positive impact of Derivatives on reducing volatility in the stock market and improving both informational and market efficiency. This book also discusses the influence of non-price variable such as volume on the prediction of prices of financial derivatives.