Securities whose values are linked to, or derived from, other securities. These include well-established instruments like futures and options, as well as newer, more complex vehicles many related to mortgage-backed bonds. Taken as a whole, derivatives encompass a broad array of securities that span a gamut of risk from safer than most bonds to highly speculative.
Contracts or instruments whose value stems from that of some underlying asset, such as commodities, equities or currencies, or from an index such as the stock-exchange index, or from an indicator such as an interest rate.
A financial security, such as an option or futures contract, whose value is derived in part from the value and characteristics of an underlying security.
Instruments whose prices derive from those of other financial instruments. Options, futures and warrants are derivatives of equities, bonds and the like.
A generic term for financial instruments such as futures, swaps and options, whose value is derived from an underlying asset. ABN AMRO has an excellent track record of working closely with European blue-chip companies to provide effective derivative solutions.
An investment contract, such as futures and options, which involves the right to buy or sell the underlying instrument at an agreed price. The value of a derivative instrument depends on (ie derived from) the value of another asset. Derivatives can be used to hedge any sort of risk such as foreign exchange or future. For example a company planning to invest money on deposit in the future can buy a derivative to potect against the risk of interest rates falling, ie, hedging against the interest rate risk.
Financial instruments whose value depends upon the characteristics and value of another underlying instrument, typically an option or futures contract. Income is provided through changes in the value of the underlying instrument(s).
Financial contracts based on an underlying product. They include futures, forwards, options and swaps
Options, futures and other investments that derive their value from other underlying assets, such as currencies, stocks, bonds or commodities. In recent years, the variety and complexity of derivatives has grown dramatically.
Instruments derived from existing instruments in the cash market. Comprising a whole range of futures, options and swaps traded on futures/options exchanges and over the counter. These instruments, often used within a portfolio of holdings, allow investors to hedge. They are often complex and therefore customised, in the case of OTC transactions, for the individual investor. Have become increasingly popular due to their off balance sheet status. See Futures, Option, FRAs, IRS.
Investments whose returns derive from the change in value of other securities or indexes such as bonds, interest rates or stocks.
Securities contracts whose prices are based on the price of an underlying asset (such as goods, securities, foreign currency, etc.) already quoted on the market; e.g. Futures, Options. Français: Dérivés Español: Derivado
An over-the-counter (OTC) or exchange-traded financial contract whose value depends on the value of the underlying instrument. Some examples are futures contracts, stock options, equity indexes, and mortgage backed securities, and OTC Forex options.
A term used to encompass products such as futures, options, and swaps; because of their potentially high risk, special rules often apply.
Derivatives are high-tech financial products developed to avoid the risks involved in fluctuations in the prices of financial products and to secure favorable conditions, including the management of high yields. They are derived from foreign exchange and interest rates. Derivatives sometimes mean only swaps and options of interest rates and currencies. Housing loans with fixed interest rates handled by city banks were developed by utilizing interest rate swaps. Derivatives have been actively utilized in transactions in industrialized countries since the 1980s, when international financial dealings increased sharply. They have also become a disturbing factor in the markets, since they make possible speculative transactions worth several hundred times more than the funds behind them, while requiring highly advanced financial technology. Monetary authorities in some countries are considering tightening controls on derivatives.
A derivative security is an equity, debt, or futures instrument stemmed from specific underlying securities or commodities. It also is defined as a financial instrument that is traded separately and has value determined by another security.
Investments that derive their value from the price of another investment or from anticipated movements in interest rates, currency exchange rates or market indexes.
Financial contracts whose value is determined by price movements in the underlying instrument.
(1) Financial instruments whose return profile is linked to, or derived from, the movement of one or more underlying index or security, and may include a leveraging factor, or (2) financial contracts based upon notional amounts whose values is derived from an underlying index or security (interest rates, foreign exchange rates, equities or commodities).
Financial instruments whose value or price or cash flow are derived from the numerical value related to an underlying or a reference asset. For instance, stock options are derivative with the price derived from the price behavior of the underlying stock. Derivatives trading serves as a tool for investment risk management.
Options, swaps, futures, forward contracts, options on futures, options on indexes, and other more exotic instruments are called deritvatives because their value and definition is derived from other securities. With some derivatives you can gain a lot of leverage on an investment, which increases the level of risk greatly. If risk management is not properly exercised, a disaster will eventually occur, and this has given derivatives a bad reputation. It's not a problem with derivatives, however, but rather a problem of a lack of proper risk management.
A collective name for futures, options and warrants.
a registered trading name of Man Financial Australia Limited
Are investment products whose value is based on, or derived from, some other item such as the price of some other asset or a market index.
Financial instruments which derive from basic products and markets. For example, options and futures are derivatives of shares, bonds etc.
A contract or option to buy or sell an asset or to receive cash at a date in the future, either for an agreed price, or in exchange for agreed assets.
A derivative is a contract whose value is “derived” from interest rates, foreign exchange rates, or equity or commodity prices. Use of derivatives allows for the transfer, modification or reduction of current or expected risks from changes in interest rates, foreign exchange rates and equity and commodity prices. See also individual definitions of forwards and futures, forward rate agreements, options and swaps.
An agreement that defines certain financial rights and obligations that are contractually linked to interest rates, exchange rates or other market prices. Futures and stock options are two common types of derivatives.
Instruments that derive their value from that of an underlying security, such as options, swaps and futures.
securities, usually in the form of a contract between two parties, whose price depends upon the price of an underlying asset such as a stock or currency
Instruments whose value derives from some underlying asset. Examples include futures contracts, options etc. Also known as synthetics.
Financial instruments, e.g. options and futures, derived from an underlying, often equities or currencies. One of the uses of derivatives in portfolio management is to reduce the risk of losses in value.
Options and future on various securities or commodities.
Securities whose prices are based on the prices of another underlying investment. They include futures, options, swaps and warrants.
are financial contracts, the value of which is derived from underlying instruments. The Province uses derivatives to hedge and minimize interest costs.
These are financial products derived from underlying primary instruments such as equities, fixed-income securities and foreign exchange instruments, the price of which is determined on the basis of an underlying security or other reference asset. Notable types of derivatives include swaps, options and futures.
index futures and options that reflect the price movement of an underlying security (e.g., a stock market index), but are traded separately from the cash market.
A security related and based upon some other underlying security. Options are an example of derivatives.
Generic term originating from the financial sector for all contracts related to an underlying security or commodity, whether or not they are traded on a futures exchange.
Securities whose values are determined by the market price or interest rate of some other asset.
contracts or agreements, the value of which is linked to interest rates, exchange rates, prices of securities, or financial or commodity indices. The Company uses derivatives to reduce its exposure to adverse fluctuations in interest and exchange rates and other market risks.
A financial instrument that derives (hence its name) its value from the price of a physical security or an index. Derivatives come in many varieties, including forwards, futures, options, share ratios, warrants and swaps.
(gold based) Overall term for highly leveraged paper or financial products whose underlying value is based on the gold price. Includes products such as gold loans, forwards, futures, options and warrants.
A general term for futures* and options*.
Generic term for financial instruments used to manage investment portfolios, such as financial futures and traded options.
Trades that are constructed or derived from another security (stock, bond, currency, or commodity). Derivatives can be both exchange and non-exchange traded (known as Over the Counter or OTC). Examples of derivative instruments include Options, Interest Rate Swaps, Forward Rate Agreements, Caps, Floors and Swap options.
Derivatives are investment instruments such as futures and options whose value depends on the price movements of an underlying investment such as a share or currency. Hence, they are "derived" from these underlying investment.
Financial instruments whose value stems from that of some underlying asset, such as a currency or commodity, or from an index such as a share-price index, or from an indicator such as an interest rate. Derivative products include options, swaps, futures contracts, caps, floors and collars.
These are high-risk techniques. The value depends on an underlier. This can be a bond or equity. Examples of a derivative would be options. The purchase of derivatives is to protect against fluctuations in the value of the underlying security. They also may help you to profit from a period of decline in the market.
Financial contracts, such as futures and options, whose value is derived from an underlying asset, rate or index.
Financial contracts the value of which depends on the value of the underlying instrument - commodity, bond, equity, currency or a combination.
Financial instruments such as futures contracts, hedges or options that are intended either to reduce the uncertainty of future transactions or to speculate for gain on future outcomes. A put option is the right to sell an asset at a fixed predetermined price during a particular period. A call option is the right to buy at a specified price during a future period.
Products, instruments, or securities which are derived from another security. Many derivatives - such as futures and options - are traded on specialized and regulated exchanges and can be bought freely by investors. There are also hundreds of different kinds of derivatives that are private, one-on-one contracts between two banks or other financial institutions, which are not as closely regulated.
Derivatives are financial instruments based on (derived from) more traditional financial instruments. For example, in many markets such as commodities, interest rates and exchange rates, futures markets have been developed where speculators, or investors and businesses wanting to hedge (protect) their positions can buy or sell for future delivery. Traded options, which give the right to buy or sell an asset at a fixed price within a fixed period of time, are another form of derivative. In recent times, the world of derivatives has become hugely complex, though most contracts are Over The Counter contracts created and traded between institutional investors.
A derivative is a synthetic construction designed to give the same profile of returns as some underlying investment or transaction, without requiring the principal cash outlay. They are called derivatives because they derive their value from the performance of the underlying instrument. Financial derivatives can be found in debt, equity, currency and commodity markets.
A derivative is an instrument whose value depends on the performance of an underlying asset or security, which may be a commodity or a financial instrument.
Investments that derive their value from underlying assets such as currencies, treasury bills, and bonds or are linked to indices such as a stock market index. Derivatives can be used to speculate on market movements or to protect investments against major swings in market prices.
A financial contract between two or more parties and it is derived from the future value of an underlying asset.
Collective noun for financial contracts between buyers and sellers of commodities and capital. Includes futures, options and swaps.
Investments which derive their value from other assets, e.g. futures, options, warrants and forward rate agreements.
a type of financial instruments whose value is ‘derived' from the price of some underlying asset (e.g. an interest level or stock market index). They are designed to help companies “hedge” (protect themselves against the risk of price changes) or as speculative investments from which great profits can be made. The rapid growth in derivatives trading has played a major part in the growing volatility of the global financial system.
The term derivatives in relation to financial markets is a collective term for futures and options. Derivatives are traded on the London International Financial Futures & Options Exchange (LIFFE), and elsewhere, and the price of a derivative is derived from the underlying security, i.e. bonds, equities, currency or commodity. In view of the speculative nature of derivatives M&G do not use them very much, preferring to invest directly into equities. From time to time we may use derivatives relating to currencies for hedging against currency risks attached to overseas investments (but not for speculative purposes).
Derivatives are financial instruments, which include forwards, futures, options and swaps, whose value is based on an underlying asset, index or reference rate.
Derivatives are securities, such as options, futures, and swaps, whose value is derived in part from the value and characteristics of another underlying security.
A form of investment, such as options or futures, which are based, or derive from, ordinary shares or bonds.
Financial instruments whose values are based on expected price movements in underlying assets (shares, currencies, and commodities).
stock option plans, option contracts, regulations, accounting aspects
Securities that base their value on another security, (eg. futures and options).
Financial instruments whose values is based on the market value of an underlying asset such as stocks, bonds or a commodity. Examples of derivatives include futures contracts, options and forward contracts.
A security derived and whose value is dependent upon the underlying security from which it is derived. Examples include forward contracts, options, future contracts. Underlying securities can include stocks, bonds and currencies. Derivatives are mostly in use to hedge portfolio risk.
A specialized security or contract that has no intrinsic overall value, but whose value is based on an underlying security or factor as an index. A generic term that, in the energy field, may include options, futures, forwards, etc.
Complicated financial instruments, like options and futures contracts, that derive their value by reference to an underlying asset or index.
General title given to options and futures.
Derivative products is the collective term applied to certain types of financial instruments such as futures and options. Their value derives from other commodities, indices or individual shares.
Contracts or investments that are based on the performance or value of a security such as a stock or bond are derivative. In other words, they are derived from a security but are not the security themselves.
Financial instruments whose value varies with the value of an underlying asset (such as a stock, BOND, commodity or currency) or index such as interest rates. Financial instruments whose characteristics and value depend on the characterization of an underlying instrument or asset.
Asset or security whose value depends on a contractual relationship to another, eg a future and option.
securities that derive their value from another physical asset, also known as synthetics. Examples of derivates include futures and options.
financial instruments such as options that are based on underlying securities.
Collective term given to forwards, futures, swaps and options.
A financial instrument whose value is based on, or derived from, the price of an underlying financial asset, such as a cash commodity, futures contract, or a market index. Derivatives can be traded on regulated exchange markets or over-thecounter. Examples of derivatives include Forward Contracts, Futures Contracts, Options.
A broad term relating to risk management instruments such as futures, options, swaps etc.. The contract value moves in relation to the underlying instrument or currency.
Financial contracts whose value is derived from the value of some underlying asset, rate or index. Derivatives are used as risk-management tools by governments and corporations to reduce exposure to risk, mainly related to fluctuations in foreign-exchange and interest rates. Derivative instruments include swaps, options, futures and forward contracts and are used by banks in two principal activities: sales/trading and asset/liability management.
Securities whose value is based on another underlying investment. The main derivatives are options, futures and warrants. They can be attractive investments as they can offer very large profits for a relatively small amount of money. Derivatives are basically a bet on which way the underlying investment will go, therefore money can be made whether the market goes up or down. They are not suitable for everyone though, as they tend to be high risk and losses can be considerable - remember Nick Leeson
Investments that derive their value from underlying assets such as stocks or bonds; can be used to hedge a portfolio, or to speculate on the markets.
Financial instruments or arrangements that derive their value from some underlying stock, bond, commodity or other asset. Futures, swaps, some forwards, options and warrants, and certain mortgage-backed securities are the most common derivative forms.
Securities whose value is "derived" from an underlying financial instrument or commodity. Derivatives are contracts between a buyer and a seller. In the case of exchange-traded derivatives, the specifications are defined by the exchange. Derivative contracts traded over-the-counter often are tailored to the situation and specifications may vary widely.
Securities whose value is determined in part by that of another security.
Derivatives are investments that are "derived" from something else. For example, options are derivatives because the option has an underlying stock, commodity or other asset on which its price is based. Futures, forwards and options are the most common types of derivatives, which are used to generate returns and/or hedge away certain risks.
Securities that derive their value from another security; e.g. futures and options.
Contracts that derive their value from an underlying financial asset, such as publicly-traded securities and foreign currencies. Often used as a hedge against changes in value.
Instruments, such as options and futures contracts, which derive their value from the value of an underlying security, group of securities or an index.
Financial instruments whose value is derived from underlying value of another security. Derivatives include options and futures.