Financial derivative products are one of the basic tools of modern finance. In fact, within the current global volatile financial environment, financial derivatives are becoming increasingly important as can be used both for hedging and speculation. The course is addressed to the undergraduate students of the Financial Engineering Track and focuses on both the structure and the operating mechanisms of the financial derivatives markets. More specifically, we present the main types of financial derivatives (forwards, futures, options and swaps) and the various pricing techniques (e.g., mark-to-market (futures) and binomial model (options), etc.,) and their underlying ideas (eg., absence of arbitrage). Special emphasis will be given on both real-world applications as well as the underlying mathematical framework. Examples stemming from risk management and speculation will be presented.