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# What are derivatives?

###### Wiki User

###### 2011-10-25 23:35:35

In calculus, a derivative is basically the slope of a function.

For example the derivative of 3x + 1 is 3, and the derivative of

5x2 is 10x.

A derivative can also be a word derived (made) from another

word. For example, "electricity" is a derivative of "electric".

A derivative can also be a compound made from another compound

(as in chemistry).

Anything that "results from deviation" can be called a

derivative. This basically means that if something is made from, or

branches of something else, it can be called a derivative.

## Related Questions

###### Asked in Calculus

### What is spatial derivatives?

###### Asked in Jobs & Education, Math and Arithmetic, Algebra, Calculus

### How derivatives are helpful to find the behavior of graph of function'?

(1) Derivatives are useful tools for providing information about
the behaviour of the graph.
(2)Derivatives helps to measure the steepness of the graph.
(3)Derivatives gives us information wether the graph is increasing
or decreasing.
(4) Derivatives Helps us to determine maximum,minimum value,and
crital pointsof graph. hope it will help Kalim Raja

###### Asked in Business & Finance, Investing and Financial Markets, Small Business Loans

### What is derivatives in terms of finance..?

In finance, a derivative is a financial instrument (or, more
simply, an agreement between two parties) that has a value, based
on the expected future price movements of the asset to which it is
linked-called the underlying asset-such as a share or a currency.
There are many kinds of derivatives, with the most common being
swaps, futures, and options. Derivatives are a form of alternative
investment.
A derivative is not a stand-alone asset, since it has no value
of its own. However, more common types of derivatives have been
traded on markets before their expiration date as if they were
assets. Among the oldest of these are rice futures, which have been
traded on the Dojima Rice Exchange since the eighteenth
century.
Derivatives are usually broadly categorized by:
* the relationship between the underlying asset and the
derivative (e.g., forward, option, swap);
* the type of underlying asset (e.g., equity derivatives,
foreign exchange derivatives, interest rate derivatives, commodity
derivatives or credit derivatives);
* the market in which they trade (e.g., exchange-traded or
over-the-counter);
* their pay-off profile.
Another arbitrary distinction is between:
* vanilla derivatives (simple and more common); and
* exotic derivatives (more complicated and specialized).