Derivative (finance)

related topics
{company, market, business}
{rate, high, increase}
{math, number, function}
{style, bgcolor, rowspan}
{theory, work, human}
{government, party, election}

Bruxelles Bourse.jpg

Public market

Exchange
Securities

Fixed income
Corporate bond
Government bond
Municipal bond
Bond valuation
High-yield debt

Stock
Preferred stock
Common stock
Registered share
Voting share
Stock exchange

Securitization
Hybrid security
Credit derivative
Futures exchange

Spot market
Forwards
Swaps
Options

Exchange rate
Currency

Money market
Reinsurance market
Commodity market
Real estate market

Participants
Clearing house
Financial regulation

Finance series
Banks and banking
Corporate finance
Personal finance
Public finance

In finance, a derivative is a financial instrument (or, more simply, an agreement between two parties) that has a value, based on the expected future price movements of the asset to which it is linked—called the underlying asset—[1] such as a share or a currency. There are many kinds of derivatives, with the most common being swaps, futures, and options. Derivatives are a form of alternative investment.

A derivative is not a stand-alone asset, since it has no value of its own. However, more common types of derivatives have been traded on markets before their expiration date as if they were assets. Among the oldest of these are rice futures, which have been traded on the Dojima Rice Exchange since the eighteenth century.[2]

Derivatives are usually broadly categorized by:

Full article ▸

related documents
Economy of Botswana
Economy of Tunisia
Time Warner
Economy of Bulgaria
Tariff
Economy of Cambodia
Canadian dollar
Economy of Nicaragua
Economy of Uganda
British Aerospace
Tertiary sector of the economy
Economy of the Netherlands
Economy of Libya
Economy of Albania
Economy of Malawi
Economy of Paraguay
Economy of Latvia
Monopolistic competition
Economy of the Czech Republic
Economy of the Democratic Republic of the Congo
Economy of Papua New Guinea
Economy of Samoa
Railroad Revitalization and Regulatory Reform Act
Orange (brand)
Seigniorage
Oligopoly
Industry
Economy of Luxembourg
World Bank Group
Economy of Italy