derivative


derivative
A financial instrument, the price of which has a strong correlation with an underlying commodity, currency, economic variable or financial instrument. The different types of derivatives are futures contracts, forwards (see forward dealing), swaps, and options. They are traded on derivatives markets or over the counter (OTC). The market-traded derivatives are standard but the OTC trades can be customized with regard to maturity, quantity, or pricing structure for a particular client. The disclosure of derivatives in financial statements is required by Financial Reporting Standard 13.

Accounting dictionary. 2014.

Synonyms:

Look at other dictionaries:

  • derivative — de·riv·a·tive 1 /də ri və tiv/ n: a contract or security that derives its value from that of an underlying asset (as another security) or from the value of a rate (as of interest or currency exchange) or index of asset value (as a stock index) ◇… …   Law dictionary

  • Derivative — De*riv a*tive, a. [L. derivativus: cf. F. d[ e]rivatif.] Obtained by derivation; derived; not radical, original, or fundamental; originating, deduced, or formed from something else; secondary; as, a derivative conveyance; a derivative word. [1913 …   The Collaborative International Dictionary of English

  • Derivative — De*riv a*tive, n. 1. That which is derived; anything obtained or deduced from another. [1913 Webster] 2. (Gram.) A word formed from another word, by a prefix or suffix, an internal modification, or some other change; a word which takes its origin …   The Collaborative International Dictionary of English

  • derivative — [adj] borrowed, transmitted from source acquired, ancestral, caused, cognate, coming from, connate, copied, evolved, hereditary, imitative, inferential, inferred, not original, obtained, plagiaristic, plagiarized, procured, rehashed, secondary,… …   New thesaurus

  • derivative — ► ADJECTIVE 1) chiefly derogatory imitative of the work of another artist, writer, etc. 2) (of a financial product) having a value deriving from an underlying variable asset. ► NOUN 1) something which is derived from another source. 2) a… …   English terms dictionary

  • derivative — [də riv′ə tiv] adj. [ME derivatif < LL derivativus < L derivatus, pp. of derivare: see DERIVE] 1. derived 2. using or taken from other sources; not original 3. of derivation n. 1. something derived 2 …   English World dictionary

  • derivative — early 15c. (adj.); mid 15c. (n.), from M.Fr. dérivatif (15c.), from L.L. derivativus, from pp. stem of L. derivare (see DERIVE (Cf. derive)). Mathematical sense is from 1670s …   Etymology dictionary

  • Derivative — This article is an overview of the term as used in calculus. For a less technical overview of the subject, see Differential calculus. For other uses, see Derivative (disambiguation) …   Wikipedia

  • derivative — Coming from another; taken from something preceding; secondary. That which has not its origin in itself, but owes its existence to something foregoing. Anything obtained or deduced from another @ derivative action A suit by a shareholder to… …   Black's law dictionary

  • derivative — Coming from another; taken from something preceding; secondary. That which has not its origin in itself, but owes its existence to something foregoing. Anything obtained or deduced from another @ derivative action A suit by a shareholder to… …   Black's law dictionary

  • derivative — derivatively, adv. derivativeness, n. /di riv euh tiv/, adj. 1. derived. 2. not original; secondary. n. 3. something derived. 4. Also called derived form. Gram. a form that has undergone derivation from anoth …   Universalium