- 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
* * *derivative de‧riv‧a‧tive [dɪˈrɪvətɪv] noun [countable usually plural] FINANCEsomething 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.
* * *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.»
In the past 20 years there has been a huge growth in the derivatives markets.
Financial and business terms. 2012.
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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