Derivative security

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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 ?
The following table summarizes fair value of our financial derivatives as of September 30, 2015 and June 30, 2015:
4 billion, mostly as a result of decreases in the value of financial derivatives.
The derivatives market also has 26 Clearing Members and there are 11 Clearing Members for OTC-traded financial derivatives on SGX AsiaClear.
The company performed the management and administration activities on its financial assets and liabilities, including ECP, MTN, private placement, intercompany loans and financial derivatives.
An Introduction to the Mathematics of Financial Derivatives, 3rd Edition
The German bank said it will focus on its core competencies of financial derivatives and precious metals.
Katia Tayyar, Founder & President of Arabcom Group the event organisers, noted that the exhibition and conference would include trading in currencies, gold, oil, stocks, commodities and financial derivatives.
Financial derivatives are any type of transaction whose value depend on the value of another product.
The Monday-to-Thursday interventions will target currency-swap markets - financial derivatives used by companies and investors to hedge their currency exposure -- while on Fridays, the central bank will buy the national currency directly in return for US dollars.
CFFEX is the sole exchange established for financial derivatives trading in China.
2 billion takeover of NYSE Euronext sets the scene for a four-way battle over Europe's lucrative financial derivatives market.
They are titled "Understanding the Financial Derivatives Markets from Theory to Practice".

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