A financial instrument, traded on or off an exchange, the price of which is directly dependent upon the value of one or more underlying securities, equity indices, debt instruments, commodities, other derivative instruments, or any agreed upon pricing index or arrangement.
A derivative is an instrument that derives its value from that of an underlying instrument (such as shares, share price indices, fixed interest securities, commodities, currencies etc). Warrants and exchange traded options are types of derivatives.
A product, whose value is derived from an underlying security, structured to deliver varying benefits to different market segments and participants. The term encompasses a wide range of products offered in the marketplace including interest rate swaps, caps, floors, collars and other synthetic variable rate products.
A financial contract whose value is derived from the performance of assets, interest rates, currency exchange rates, or indexes. Derivative transactions include a wide assortment of financial contracts including structured debt obligations and deposits, swaps, futures, options, caps, floors, collars, forwards and various combinations thereof.
A financial instrument whose value changes in response to the change in a specified interest rate, security price, commodity price, foreign exchange rate, index of prices or rates, a credit rating or credit index, or similar variable, that requires no initial net investment or little initial net investment and that is settled at a future date.
A derivative is a financial security that derives its value from that of an underlying security (such as shares, share price indices, fixed interest securities, commodities, currencies etc). Warrants are types of derivatives.
A financial instrument whose return is "derived" from, or based on, an underlying security, contract, asset, or index. While there are numerous varieties of customized derivatives, the most common forms are futures and options.
Any financial asset whose value is determined by the value of another security known as the underlying security. Options and futures are probably the most well-known derivatives but there are many others including Collateralized Mortgage Obligations (CMOs), swaps, swaptions, options on futures, and a host of others. Many bonds even are derivative securities as they have embedded call or put features.
a financial instrument derived from a cash market commodity, futures contract, or other financial instrument. Derivatives can be traded on regulated exchanges or over-the-counter. Futures contracts, for example, are derivatives of physicals commodities, and options on futures are derivatives of futures contracts.
An instrument which derives its value from the value of an underlying instrument (such as shares, share price indices, fixed interest securities, commodities, currencies, etc.). Warrants and options are types of derivative.
Financial instrument derived from a cash market commodity, futures contract, or other financial instrument. Derivatives can be traded on regulated exchange markets or over-the-counter. For example, futures contracts are derivatives of physical commodities, options on futures are derivatives of futures contracts.
a financial obligation whose value is derived from interest rates, the price of underlying assets such as debt, equities, commodities and currencies, or specific events, in this case the rise or fall in water levels
a "synthetic security created from a plain vanilla long term bond that also has a variety of options attached to it that can add a higher degree of volatility that would otherwise not be present in the underlying bond
A security whose value, or interest payments, are based on (or derived from) some other security or index or financial measure. In the early 1990s certain highly speculative derivatives caused some mutual fund portfolios to incur substantial losses. Vanguard uses some very plain-vanilla, low-risk derivatives in some of its funds, such as Floating Rate Notes. (see also Floating Rate Notes)
A financial instrument whose own value is dependent on the value of another financial instrument. The price of a derivative is derived from the price of an underlying equity, currency, interest rate, etc.. These instruments provide wider options for risk management and control.
Derivatives are investments that are "derived" from something else. For example, options are derivatives because the option has an underlying stock, commodity or other asset on which its price is based.
Is a financial product which is based upon another product. Futures are based on commodities, financial indices or securities. Options are based on futures, securities or cash markets. Forwards are extensions of the cash market across time. CMOs are derived from MBS and so on. Generally, derivatives are risk management tools, however they are also used for investment or speculative purposes. For more information about DERIVATIVES, click here.
A financial contract that derives its value from an underlying security, liability or index. Derivatives come in many varieties, including forwards, futures, options, warrants and swaps. Also known as Synthetic.
a financial contract whose value is â€œderivedâ€ from another security, such as stocks, bonds, commodities, or a market index such as the Standard & Poorâ€(tm)s 500. The most common types of derivatives are options, futures and mortgage-backed securities.
Financial instrument derived from another product, the underlying product, which can be an interest rate, a currency, a stock or a bond. The price of the derivative changes according to variations in its underlying product.
A collective term for securities whose prices are based on the prices of another underlying investment. Derivatives are essentially a bet on which way the price of the underlying instrument is going and can be used to reduce the risk of (hedge) and investment in the underlying instrument.
A highly complex type of investment whose value is derived from another underlying asset. For example, options are derivatives because the option has an underlying stock, commodity or other asset on which its price is based.
An investment that derives its value from another investment which is called the underlying investments. Derivatives usually take the form of a contract with another party to buy or sell an asset at a later time. An example is a futures contract.
Any kind of investment whose value is derived from or linked to an underlying stock, bond, currency or mortgage. This could include futures, options, or more esoteric fixed-income investments with acronyms like TIGRs or CMOs that you should best stay away from
A financial contract whose value is based on, or derived from, another financial instrument (such as a bond or share) or a market index (such as the Share Price Index). Examples of derivatives include futures, forwards, swaps and options.
A financial contract whose value depends upon the value of an underlying instrument or asset (e.g., a commodity, bond, equity, or currency, or a combination of these). Three classes of financial products fall under the heading of derivative: derivative securities, exchange-traded derivatives, and over-the-counter derivatives.
An instrument derived from securities, currencies or commodities, or an index or indicator representing any of these, the price of which will move in a direct relationship to the price of the base instrument or index.
financial instrument whose value is based on value of another underlying security, index, asset or rate. These range from option contracts, to forward and future contracts, to extremely complex and volatile products. I.e. ETFs
financial instrument based on (derived) from a physical commodity or another financial instrument. A futures contract is a derivative of a physical commodity, an option is a derivative of a futures contract.
A term used to define a broad base of financial instruments whose value is based on, or "derived" from, an underlying rate, price or index. Examples include swaps, options and futures contracts and can be based on interest rates, foreign currency, commodities or prices of other financial instruments, such as stocks and bonds.
A financial instrument whose performance is linked to a specific security, index or financial instrument. Typically, derivatives are used to transfer risk or negotiate the future sale or delivery of an investment. Derivative instruments come in four basic forms: forward contracts, futures contracts, swaps and options.
This is a general word used to describe special financial instruments such as options and futures contracts . Financial instruments are agreements to buy or sell something, under terms laid out in a contract.
Financial instrument who derive their value from the price of an underlying security. This is the generic term given to futures contracts and options, both of which can be used to reduce risk in an institutional fund or, in the case of options, even in a large private portfolio.
A financial instrument derived from securities, commodities or currencies, or an index representing any of these, the price of which will move in direct relationship to the price of the underlying instrument.
The most basic definition of a derivative instrument is -- An instrument whose structural characteristics and variables are based on the structural characteristics and variables of other more basic underlying instruments. These structural characteristics and variables include -- amount and timing of cash flows; maturity and expiration dates; and exposure to interest rate, credit, prepayment, and valuation risks. Derivative instruments include, futures, options, swaps, caps, ceilings, floors, collars, etc.
A product which derives (gets) its price based on the price of something else. In the case of options, an options price is derived from the underlying instrument on which the option is based (i.e. stock or other security).
Price of this product fluctuates with linked investing tools like currency or other financial products. Examples are the price of financial products that fluctuates because of the exchange rate or interest rate. Derivatives are often used as hedging tools in one's portfolio.
A security derived from another and whose value is dependent the underlying security from which it is derived. Examples of derivatives are future contracts, forward contracts and options. Underlying securities can include stocks, bonds or currencies. Derivatives can be traded and are usually used to hedge portfolio risk.
Derivatives are hybrid investments, such as futures contracts, options, and mortgage-backed securities, whose value is based on the value of an underlying investment. For example, the changing value of a crude oil futures contract depends on the upward or downward movement of oil prices. Certain investors, called hedgers, are interested in the underlying investment. 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. Derivatives are traded on exchanges, over the counter (OTC), and in private transactions.
An instrument, such as an option, future or swap, of which the criteria and value are determined by those of an underlying asset such as a stock, currency or commodity. Derivatives are used extensively in the hedging of financial- and treasury-type risks.
A contractual agreement between two counterparties, recorded off-balance sheet, calling for the exchange of cash flows on a notional principal basis. Examples of derivatives include swap agreements, futures contracts, and options contracts. As defined, derivatives are not permissible credit union investments.
An investment contract based on an underlying investment called an "instrument." The most common type of derivative is an option contract, which involves the right to buy or sell the underlying instrument at an agreed price. Futures contracts are also derivatives.
Is a financial instrument which is based entirely on another security. (i.e. options, futures)
In finance, a derivative is a financial instrument derived from some other asset; rather than trade or exchange the asset itself, market participants enter into an agreement to exchange money, assets or some other value at some future date based on the underlying asset. A simple example is a futures contract: an agreement to exchange the underlying asset (or equivalent cash flows) at a future date. The exact terms of the derivative (the payments between the counterparties) depend on, but may or may not exactly correspond to, the behaviour or performance of the underlying asset.
The "D" part of PID controllers. With derivative action, the controller output is proportional to the rate of change of the process variable or error. Some manufacturers use the term rate or pre-act instead of derivative. Derivative, rate, and pre-act are the same thing. Derivative action can compensate for a changing process variable. Derivative is the "icing on the cake" in PID control, and most people don't use it. It can make the controller output jittery on a noisy loop and most people don't use derivative on noisy loops for this reason. See presentation on Derivative Action, the Good, the Bad, and the Ugly.
A term used in a PID loop calculation. This term acts only on the change in slope of the input signal. Its purpose is to change the output as the input gets near the setpoint to prevent overshoot or undershoot.
Something that gets (derives) its value from something else. For example, the price of the Barclays spread bet market is derived from the price of Barclays shares in the cash market. A spread bet is therefore a derivative contract
A substance so related to another substance by modification or partial substitution as to be regarded as derived from it; thus, the amido compounds are derivatives of ammonia, and the hydrocarbons are derivatives of methane, benzene, etc.
A derivative of a compound resembles the original compound, except that some modifications in atomic structure are evident. Usually, derivatization of a molecule involves altering part of it slightly or adding a new part to the original compound.
Generally, a derivative is a compound obtained by some minor modification. Derivative crystals, obtained by soaking compounds of heavy atoms like mercury, gold or platinum into a protein crystal are used as a tool to solve crystal structures.
A compound that can be imagined to arise from a partent compound by replacement of one atom with another atom or group of atoms. Used extensively in orgainic chemistry to assist in identifying compounds.
In chemistry, a derivative is a compound that is formed from a similar compound or a compound that can be imagined to arise from another compound, if one atom is replaced with another atom or group of atoms. The latter definition is common in organic chemistry. In biochemistry, the word is used about compounds that at least theoretically can be formed from the precursor compound.
a word that is derived from the headword. Derivatives of sleepless, for example, are sleeplessly and sleeplessness. They are shown at the end of the entry for sleepless, without a definition. Sometimes the derivative can be identical to the headword, but a different part of speech (for example the adjective apricot at the noun apricot). This is a zero derivative. Derivatives shown without definitions are run-on derivatives.