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
Jimmy Fallon
Jimmy Fallon (born September 19, 1974) is an American TV talk show host, comedian, actor, singer and musician. He was the host of NBC's Late Night ...
Contributor
Featured blossaries
Browers Terms By Category
- Inorganic pigments(45)
- Inorganic salts(2)
- Phosphates(1)
- Oxides(1)
- Inorganic acids(1)
Inorganic chemicals(50) Terms
- Cables & wires(2)
- Fiber optic equipment(1)
Telecom equipment(3) Terms
- SSL certificates(48)
- Wireless telecommunications(3)
Wireless technologies(51) Terms
- General law(5868)
- Courts(823)
- Patent & trademark(449)
- DNA forensics(434)
- Family law(220)
- Legal aid (criminal)(82)
Legal services(8095) Terms
- Automobile(10466)
- Motorcycles(899)
- Automotive paint(373)
- Tires(268)
- Vehicle equipment(180)
- Auto parts(166)