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 ?
Fifteen years ago, reviewing one of his shows at Paul Rosenberg's in The Nation, while I admired his landscapes, I gave most of my space to the derivativeness of the figure pieces, that made up the bulk of the show, and if I failed to discern how much there was in these that was not Matisse, it was not only because of my own imperceptiveness, but also because the artist himself had contrived not to call enough attention to it.
Even a well-known and well-published poet like Matthew Arnold can participate in the minor's exhibition of derivativeness, as in the well-known cases of "The Scholar-Gypsy" and "Thyrsis.
A welcome change from the derivativeness of Amy and Aperghis, Bacri's First Suite for Violoncello Solo, op.
Authentic" designates those music, musicians, and musical experiences seen to be direct and honest, uncorrupted by commerce, trendiness, derivativeness, a lack of inspiration, and so on'.
Ironically, the choice suggested caution and derivativeness rather than boldness; Buck had borrowed it from Lenin, who had borrowed it from Marx).
Haddad, who have maintained the journal's commitment to discriminate "between good and bad scholarship, between a version of the truth and an ideological fiction," as the founding editors promised, and "between originality and lackluster derivativeness.
Perhaps this happens as a result of his major defence of Gozzano against charges of massive plagiarism and derivativeness.