derivative

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Derivative

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.

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.

derivative

An asset that derives its value from another asset. For example, a call option on the stock of Coca-Cola is a derivative security that obtains value from the shares of Coca-Cola that can be purchased with the call option. Call options, put options, convertible bonds, futures contracts, and convertible preferred stock are examples of derivatives. A derivative can be either a risky or low-risk investment, depending upon the type of derivative and how it is used. See also underlying asset.

Derivative.

Derivatives are financial products, such as futures contracts, options, and mortgage-backed securities. Most of derivatives' value is based on the value of an underlying security, commodity, or other financial instrument.

For example, the changing value of a crude oil futures contract depends primarily on the upward or downward movement of oil prices.

An equity option's value is determined by the relationship between its strike price and the value of the underlying stock, the time until expiration, and the stock's volatility.

Certain investors, called hedgers, are interested in the underlying instrument. For example, a baking company might buy wheat futures to help estimate the cost of producing its bread in the months to come.

Other investors, called speculators, are concerned with the profit to be made by buying and selling the contract at the most opportune time. Listed derivatives are traded on organized exchanges or markets. Other derivatives are traded over-the-counter (OTC) and in private transactions.

derivative

a financial instrument such as an OPTION or SWAP whose value is derived from some other financial asset (for example, a STOCK or SHARE) or indices (for example, a price index for a commodity such as cocoa). Derivatives are traded on the FORWARD MARKETS and are used by businesses and dealers to ‘hedge’ against future movements in share, commodity etc. prices and by speculators seeking to secure windfall profits. See LONDON INTERNATIONAL FINANCIAL FUTURES EXCHANGE (LIFFE), EUREX.

derivative

a financial instrument such as an OPTION or SWAP the value of which is derived from some other financial asset (for example, a STOCK or SHARE) or indices (for example, a price index for a commodity such as cocoa). Derivatives are traded on the FUTURES MARKETS and are used by businesses and dealers to ‘hedge’ against future movements in share, commodity, etc., prices and by speculators seeking to secure windfall profits. See LONDON INTERNATIONAL FINANCIAL FUTURES EXCHANGE (LIFFE), STOCK EXCHANGE.
References in periodicals archive ?
It may therefore be assumed that, based on these combinations, the meanings of creation and transfer of possession are associated derivatively with bake and the ditransitive pattern.
claim derivatively before Cofiniti acquired SinglePoint, then the
I propose giving standing to an on-campus constituency to sue the board derivatively on behalf of the university.
Without limiting the generality of the foregoing, and to the fullest extent permitted by law, the directors and officers [individuals] shall have no personal liability to the Organization or any of its subsidiaries, their respective securities holders, or any other person claiming derivatively through the organization, regardless of the theory or principle under which such liability may be asserted, for:
So we understand it derivatively, only insofar as we understand its models.
Recent events in regard to Iraq, and derivatively in a large range of other Moslem countries from Algeria to Indonesia, have served as a warning in regard to the aggressive aspects of Islam.
The method applies to God, too, who must be interrogated, approached derivatively through the questioning of the care-ridden questioner, Dasein.
Jews and Christians share deeply and broadly what is most treasured, precious, and definitional in our faith; both Judaism and Christianity are formed and informed by the faith of ancient Israel--Judaism directly and Christianity derivatively.
Christian ethics is only secondarily and derivatively geared to the articulation of norms, principles, and rules.
The obligation to educate in virtue was primarily that of parents: derivatively, of the schools they founded and governed.
Abbott also includes references to French law, presumably because of its philosophic influence, specifically in the realm of championing concepts of freedom and therefore, derivatively, free market expression, upon North America.
In Aristotle, something can be denominated black that is not wholly so if it has enough black to justify the term; in such a case it can also be said to be black derivatively, insofar as the appropriateness of using the term black is derived from how much blackness there is in the thing.

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