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
RQ-170 Sentinel
Nick-named the Beast of Kandahar, the RQ-170 Sentinel is an unmanned aerial vehicle (UAV) developed by Lockheed Martin for the Central Intelligence ...
Contributor
Featured blossaries
stanley soerianto
0
Terms
107
Blossaries
6
Followers
Italy National Football Team 2014
Browers Terms By Category
- General astrology(655)
- Zodiac(168)
- Natal astrology(27)
Astrology(850) Terms
- Bridge(5007)
- Plumbing(1082)
- Carpentry(559)
- Architecture(556)
- Flooring(503)
- Home remodeling(421)
Construction(10757) Terms
- Mapping science(4042)
- Soil science(1654)
- Physical oceanography(1561)
- Geology(1407)
- Seismology(488)
- Remote sensing(446)
Earth science(10026) Terms
- Digital Signal Processors (DSP)(1099)
- Test equipment(1007)
- Semiconductor quality(321)
- Silicon wafer(101)
- Components, parts & accessories(10)
- Process equipment(6)
Semiconductors(2548) Terms
- Christmas(52)
- Easter(33)
- Spring festival(22)
- Thanksgiving(15)
- Spanish festivals(11)
- Halloween(3)