Home > Terms > English, UK (UE) > Derivative
Derivative
A financial instrument or other contract within the scope of (a) its value changes in response to the change in a specified interest rate, financial instrument price, commodity price, foreign exchange rate, index of prices or rates, credit rating or credit index, or other variable, provided in the case of a non-financial variable that the variable is not specific to a party to the contract (sometimes called the ‘underlying’); (b) it requires no initial net investment or an initial net investment that is smaller than would be required for other types of contracts that would be expected to have a similar response to changes in market factors; and (c) it is settled at a future date. * In the case of an intangible asset, the term ‘amortisation’ is generally used instead of ‘depreciation’. The two terms have the same meaning.
- Part of Speech: noun
- Synonym(s):
- Blossary:
- Industry/Domain: Financial services
- Category: Accountancy
- Company:
- Product:
- Acronym-Abbreviation:
Other Languages:
Member comments
Terms in the News
Featured Terms
Contributor
Featured blossaries
karel24
0
Terms
23
Blossaries
1
Followers
Top electric guitar brands
Browers Terms By Category
- Project management(431)
- Mergers & acquisitions(316)
- Human resources(287)
- Relocation(217)
- Marketing(207)
- Event planning(177)
Business services(2022) Terms
- Marketing communications(549)
- Online advertising(216)
- Billboard advertising(152)
- Television advertising(72)
- Radio advertising(57)
- New media advertising(40)
Advertising(1107) Terms
- Advertising(244)
- Event(2)
Marketing(246) Terms
- Fuel cell(402)
- Capacitors(290)
- Motors(278)
- Generators(192)
- Circuit breakers(147)
- Power supplies(77)