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What does derivatives mean?

Updated: 9/14/2023
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14y ago

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In English (Language arts) it means words that come from other words. Suitable is derived from suit;advertisement from advertise. Sometimes the spelling of the root word is slightly changed in the derived word.
to receive or obtain from a source or origin
Derive means to obtain something from a specified source. Derived is the past tense of derive.

Example: I derived great pleasure from the triple fudge brownies that were served at school.

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8y ago
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14y ago

A security whose price is dependent upon or derived from one or more underlying assets. The derivative itself is merely a contract between two or more parties. Its value is determined by fluctuations in the underlying asset. The most common underlying assets include stocks, bonds, commodities, currencies, interest rates and market indexes. Most derivatives are characterized by high leverage

Geetha

geetha.srinivas@kenexa.com

Kenexa Technologies

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15y ago

It explains.

"They derived the formula" or in other words "they broke it down and understood the formula"

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9y ago

It means: to obtain something from a specific source.

Excample: They derived great comfort from this assurance.

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8y ago

obtain something from(a specified source)

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What do equity derivatives refer to?

Equity derivatives refer to the options and futures one has when trading or selling off different equitable assets. Equity options are the most common derivatives that there are.


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).


About derivatives market you mean the exacltly definition of derivative market?

the derivative market means the the price of particular product in the market is fluctuating time by time.


Why is derivatives important?

the simply meaning of derivative is a market which is helps to minimized the risk of loss. and the main objective if any business is to bring maximized profit to company so that's the reason to derivatives is important.


Identify the major types of securities traded in the securities markets?

shares ,derivatives