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 ?
Aeroflot announces the launch of futures derivative contracts trading on Moscow Exchange's Derivatives Market.
05 per gallon in unfavorable cash settlements from fuel derivative contracts.
Summers is by no means incompetent; the issue at hand is his track record regarding his ardent and effusive lobbying against the regulation of derivative contracts.
Indian derivative contracts end on the final Thursday of every month.
The bank sued the firms to enforce derivative contracts that are worth at least EUR455m.
Summary: Indian shares ended marginally higher in a choppy session on Tuesday, closing at the highest in a month as gains in Reliance were offset by losses in lenders such as SBI on caution ahead of April derivative contracts expiry and the RBI policy review next week.
The text submits all derivative contracts, not just OTCs, to the obligation to be reported to trade repositories (ie central data centres).
The volume of iron ore derivative contracts cleared using The Steel Index (TSI's) iron ore price index hit a new record of over 6.
Information on OTC derivative contracts should, according to the Commission, be reported to trade repositories and be accessible to supervisory authorities.
It said traders will be allowed to trade derivative contracts until 1 a.
While agreeing to some violations on the part of banks in selling forex derivative contracts ( FDCs) to their customers in its preliminary counter affidavit, the banking regulator contended that an allegation of one party committing fraud on another in these contracts ' does not appear to be sustainable' as the structure of the contract is decided much earlier.