- derivative
- An investment vehicle whose value depends on the value of an underlying asset or index. For example, a futures contract for the delivery of gold depends on the value of gold (the underlying asset). A futures option which, upon exercise, delivers a gold futures contract depends on the value of the underlying gold futures contract. The CENTER ONLINE Futures Glossary————A financial contract whose value is based on, or "derived" from, a traditional security (such as a stock or bond), an asset (such as a commodity), or a market index. Bloomberg Financial Dictionary————An investment tool that is derived from an underlying instrument. An example would be an FX currency futures conract, which trades at CME. Chicago Mercantile Exchange Glossary————A term used to encompass products such as futures, options, and swaps; because of their potentially high risk, special rules often apply. Dresdner Kleinwort Wasserstein financial glossary————A security whose value is dependent on, or derived from, the value of some underlying asset. LIFFE
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something such as an option (= the right to buy or sell something at a particular price within a particular period ) or a Future (= a fixed price that you pay now for delivery of something in the future ) based on underlying assets such as shares, bonds, and currencies:• Derivatives often offer investors an easy way to make bets in markets that might be otherwise inaccessible.
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derivative UK US /dɪˈrɪvətɪv/ noun [C, usually plural] (also derivative instrument, also derivative product)► STOCK MARKET, FINANCE a financial product such as an option (= the right to buy or sell something in the future) that has a value based on the value of another asset, such as shares, or bonds: »GS Financial Products buys and sells derivatives such as swaps and options linked to interest rates, currencies, commodities and indexes.
»derivatives trading
»In the past 20 years there has been a huge growth in the derivatives markets.
Financial and business terms. 2012.
