a financial instrument or other contract with all three of the following characteristics
Examples of derivative instruments are options or futures whose value is derived from something else, namely the underlying asset. Derivatives are not allowed in the Marketocracy competition.
Financial instrument whose value depends on the value of another asset.
A financial instrument or contract with another party (counterparty) that is structured to meet any of a variety of financial objectives, including those related to fluctuations in interest rates, currency exchange rates and commodity prices. Options, forwards and swaps are the most common derivative instruments we employ. See “Hedge.
Financial instrument whose price is based on an underlying security--for example, an option's value can be derived either from its underlying stock, stock index, or future (dependent upon the type of option). See: Options; Underlying Security
A type of financial instrument which derives its value from the value of other financial instruments.
An instrument which derives value from the value of some commodity, energy, or other financial instrument.
An instrument which derives its value from the value of other financial instruments. Article includes a list of vanilla and exotic derivatives.
