An investment vehicle whose value depends on the value of an underlying asset or index. For example, a futures contract for the delivery of gold depends on the value of gold (the underlying asset). A futures option which, upon exercise, delivers a gold futures contract depends on the value of the underlying gold futures contract. The CENTER ONLINE Futures Glossary
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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. Bloomberg Financial Dictionary
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An investment tool that is derived from an underlying instrument. An example would be an FX currency futures conract, which trades at CME. Chicago Mercantile Exchange Glossary
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A term used to encompass products such as futures, options, and swaps; because of their potentially high risk, special rules often apply. Dresdner Kleinwort Wasserstein financial glossary
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A security whose value is dependent on, or derived from, the value of some underlying asset. LIFFE
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something such as an option (= the right to buy or sell something at a particular price within a particular period ) or a Future (= a fixed price that you pay now for delivery of something in the future ) based on underlying assets such as shares, bonds, and currencies:
• Derivatives often offer investors an easy way to make bets in markets that might be otherwise inaccessible.
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derivative UK US /dɪˈrɪvətɪv/ noun [C, usually plural] (also derivative instrument, also derivative product)
► STOCK MARKET, FINANCE a financial product such as an option (= the right to buy or sell something in the future) that has a value based on the value of another asset, such as shares, or bonds: »
GS Financial Products buys and sells derivatives such as swaps and options linked to interest rates, currencies, commodities and indexes.
»derivatives trading
»In the past 20 years there has been a huge growth in the derivatives markets.
Financial and business terms. 2012.