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Definition of Derivative instrument
1. Noun. A financial instrument whose value is based on another security.
Generic synonyms: Instrument, Legal Document, Legal Instrument, Official Document
Specialized synonyms: Futures Contract, Option
Category relationships: Jurisprudence, Law
Derivative terms: Derivative
Definition of Derivative instrument
1. Noun. (finance) A security whose value is derived from one or more other, more fundamental, assets. ¹
¹ Source: wiktionary.com
Lexicographical Neighbors of Derivative Instrument
Literary usage of Derivative instrument
Below you will find example usage of this term as found in modern and/or classical literature:
1. Risk Management of Financial Derivatives: Comptroller's Handbook edited by Barry Leonard (1999)
"The degree of price risk depends on the price sensitivity of the derivative
instrument and the time it takes to liquidate or offset (close out) the position ..."
2. Capital and Interest: A Critical History of Economical Theory edited by William Smart (1922)
"119), he refuses to recognise this service as a primary factor in production,
and only allows it the place of a secondary or derivative instrument.6 Again, ..."
3. Financial Markets for the Rest of Us: An Easy Guide to Money, Bonds, Futures by Robert Vahid Hashemian (2001)
"... we will turn our attention to Options. Options are a form of derivative
instrument based on stocks or futures used for hedging as well as speculating. ..."
4. Taxing International Business: Emerging Trends in Apec and OECD Economies by Richard J. Vann (1997)
"A derivative instrument is a contractual right, constructed and priced by reference
to something else, such as an underlying security, equity, commodity or ..."
5. Insurance Solvency Supervision: OECD Country Profiles by Oecd (2002)
"Finally, the credit risk attaching to a derivative instrument may be directly
included in the solvency margin requirement. In Canada, for example, ..."