A financial contract whose value depends upon the value of an underlying instrument or asset (typically a commodity, bond, equity or currency, or a combination of these) Three classes of financial products fall under the heading of derivatives: derivative securities; exchange-traded derivatives; and over-the-counter (OTC) derivatives
A substance so related to another substance by modification or partial substitution as to be regarded as derived from it; thus, the amido compounds are derivatives of ammonia, and the hydrocarbons are derivatives of methane, benzene, etc
A security whose value is dependent on, or derived from, the value of some underlying asset
A financial instrument, traded on or off an exchange, the price of which is directly dependent upon (i e , "derived from") the value of one or more underlying securities, equity indices, debt instruments, commodities, other derivative instruments, or any agreed upon pricing index or arrangement (e g , the movement over time of the Consumer Price Index or freight rates) Derivatives involve the trading of rights or obligations based on the underlying product, but do not directly transfer property They are used to hedge risk or to exchange a floating rate of return for fixed rate of return
A financial instrument, traded on or off the exchange, the price of which is directly dependent upon the value of one or more underlying securities, equity indices, debt instruments, or any agreed upon pricing index or arrangement
A security, like an option or future, whose value is derived from another underlying security
A security whose value depends on an underlying asset, reference rate, or an index Trading a derivative instead of an underlying security can be used to increase possible return, or hedge risk
A financial instrument, traded on or off an exchange, the price of which is directly dependent upon the value of one or more of the underlying securities, commodities, other derivative instruments, or any agreed-upon pricing index or arrangement
A call or put option, future, or synthetic asset; such a contract is "derived" from a basic underlying security
Security whose value is derived, at least in part, from another security, which is referred to as the underlying security Options are a type of derivatives