How derivatives are used in real life?

Could you please explain how derivatives are utilized in our daily lives? I'm curious about the practical applications of these financial instruments and how they might impact individuals and businesses alike. Could you provide some real-world examples of how derivatives are being used, perhaps in hedging strategies or for speculation purposes? It would be helpful to understand the role of derivatives in risk management and how they can be employed to mitigate potential losses. Thank you for clarifying this concept for me.