derivative instrument
- noun
- /dɪˈrɪvətɪv ˈɪnstrəmənt/
- Specialized
:
instrumento derivado
- CDs are derivative instruments which enable market participants to transfer or redistribute credit risk.
CDs are derivative instruments which enable market participants to transfer or redistribute credit risk.
- CDs are derivative instruments which enable market participants to transfer or redistribute credit risk.
- Hindenberg announced that they have taken a short position on Adani Group companies through US listed bonds and non Indian traded derivative instruments.
Examples
-
For the full year, the items that ran through comprehensive income included unrealized gains from derivative instruments of $1 billion, unrealized investment gains of $4.5 billion, foreign currency translation adjustments of negative $100 million, and defined benefit plan adjustments of negative $500 million.
Blog text (29) -
Investors often use derivative instruments to hedge against potential losses in their portfolios.
-
In addition, there could be more self-regulation among issuers and traders of derivative instruments.
Academic text (1999) -
Many hedge funds specialize in trading derivative instruments that are based on stock market indices.
-
The financial report highlighted the risks associated with derivative instruments linked to fluctuating commodity prices.
Synonyms
66
9.5
A financial product whose value changes with another asset, like a stock
1
9.9
A financial contract privately negotiated and traded between two parties, not on an exchange
How Complex
- Specialized
- Specialized
2
6.1
- Specialized
82
3.5
∞
3.5
- Specialized
12
6.6
Surface Forms
Morphology
The phrase is fully compositional: 'derivative' (whose value derives from something else) modifies 'instrument' (a financial tool/entity), so the meaning 'a financial instrument whose value is derived from another asset' follows directly from the constituents. Although the concept is technical, if a learner knows the given senses of both words the phrase is predictable and transparent across languages.
Etymology
The term derivative instrument comes from the idea that a derivative is something whose value 'comes from' something else and an instrument is a tool or product used in trade. Imagine a small picture copied from a bigger painting: the small picture's value 'depends on' the original, so a derivative instrument means a financial product whose value 'depends on' another thing, like a stock or a bond.