derivative instrument

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derivative instrument

Noun
1. a financial instrument whose value is based on another security
(synonym) derivative
(hypernym) legal document, legal instrument, official document, instrument
(hyponym) futures contract
(classification) law, jurisprudence


Campbell R. Harvey's Hypertextual Finance GlossaryDownload this dictionary
Derivative instruments
Contracts such as options and futures whose price is derived from the price of the underlying financial asset .