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
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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
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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
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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
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A security whose value is dependent on, or derived from, the value of some underlying asset. LIFFE

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derivative de‧riv‧a‧tive [dɪˈrɪvətɪv] noun [countable usually plural] FINANCE
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.

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derivatives trading

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In the past 20 years there has been a huge growth in the derivatives markets.


Financial and business terms. 2012.

Synonyms:

Look at other dictionaries:

  • derivative — de·riv·a·tive 1 /də ri və tiv/ n: a contract or security that derives its value from that of an underlying asset (as another security) or from the value of a rate (as of interest or currency exchange) or index of asset value (as a stock index) ◇… …   Law dictionary

  • Derivative — De*riv a*tive, a. [L. derivativus: cf. F. d[ e]rivatif.] Obtained by derivation; derived; not radical, original, or fundamental; originating, deduced, or formed from something else; secondary; as, a derivative conveyance; a derivative word. [1913 …   The Collaborative International Dictionary of English

  • Derivative — De*riv a*tive, n. 1. That which is derived; anything obtained or deduced from another. [1913 Webster] 2. (Gram.) A word formed from another word, by a prefix or suffix, an internal modification, or some other change; a word which takes its origin …   The Collaborative International Dictionary of English

  • derivative — [adj] borrowed, transmitted from source acquired, ancestral, caused, cognate, coming from, connate, copied, evolved, hereditary, imitative, inferential, inferred, not original, obtained, plagiaristic, plagiarized, procured, rehashed, secondary,… …   New thesaurus

  • derivative — ► ADJECTIVE 1) chiefly derogatory imitative of the work of another artist, writer, etc. 2) (of a financial product) having a value deriving from an underlying variable asset. ► NOUN 1) something which is derived from another source. 2) a… …   English terms dictionary

  • derivative — [də riv′ə tiv] adj. [ME derivatif < LL derivativus < L derivatus, pp. of derivare: see DERIVE] 1. derived 2. using or taken from other sources; not original 3. of derivation n. 1. something derived 2 …   English World dictionary

  • derivative — early 15c. (adj.); mid 15c. (n.), from M.Fr. dérivatif (15c.), from L.L. derivativus, from pp. stem of L. derivare (see DERIVE (Cf. derive)). Mathematical sense is from 1670s …   Etymology dictionary

  • Derivative — This article is an overview of the term as used in calculus. For a less technical overview of the subject, see Differential calculus. For other uses, see Derivative (disambiguation) …   Wikipedia

  • derivative — Coming from another; taken from something preceding; secondary. That which has not its origin in itself, but owes its existence to something foregoing. Anything obtained or deduced from another @ derivative action A suit by a shareholder to… …   Black's law dictionary

  • derivative — derivatively, adv. derivativeness, n. /di riv euh tiv/, adj. 1. derived. 2. not original; secondary. n. 3. something derived. 4. Also called derived form. Gram. a form that has undergone derivation from anoth …   Universalium

  • derivative — [[t]dɪrɪ̱vətɪv[/t]] derivatives 1) N COUNT A derivative is something which has been developed or obtained from something else. ...a poppy seed derivative similar to heroin... This isn t an entirely new car, but a new derivative of the Citroen XM …   English dictionary

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