Derivative security

(redirected from Deriviative)

Derivative security

A financial security such as an option or future whose value is derived in part from the value and characteristics of another security, the underlying asset.

Derivative Security

Futures, forwards, options, and other securities except for regular stocks and bonds. The value of nearly all derivatives are based on an underlying asset, whether that is a stock, bond, currency, index, or something else entirely. Derivative securities may be traded on an exchange or over-the-counter. Derivatives are often traded as speculative investments or to reduce the risk of one's other positions. Prominent derivative exchanges include the Chicago Mercantile Exchange and Euronext LIFFE.
References in periodicals archive ?
In past international AEW&C competitions -- most notably in Turkey and Australia -- Raytheon and its partners have butted heads with Boeing, offering an Airbus A310-300 fitted with a deriviative of the Elta (Ashdod, Israel) Phalcon radar.