DERIVATIVE INSTRUMENT

Pronunciation (US):

(GB):

IPA (US):

 Dictionary entry overview: What does derivative instrument mean? 

• DERIVATIVE INSTRUMENT (noun)
  The noun DERIVATIVE INSTRUMENT has 1 sense:

1. a financial instrument whose value is based on another security

  Familiarity information: DERIVATIVE INSTRUMENT used as a noun is very rare.

 Dictionary entry details 

• DERIVATIVE INSTRUMENT (noun)

Sense 1

Meaning:

A financial instrument whose value is based on another security

Classified under:

Nouns denoting communicative processes and contents

Synonyms:

derivative; derivative instrument

Hypernyms ("derivative instrument" is a kind of...):

instrument; legal document; legal instrument; official document ((law) a document that states some contractual relationship or grants some right)

Domain category:

jurisprudence; law (the collection of rules imposed by authority)

Hyponyms (each of the following is a kind of "derivative instrument"):

futures contract (an agreement to buy or sell a specific amount of a commodity or financial instrument at a particular price on a stipulated future date; the contract can be sold before the settlement date)

option (the right to buy or sell property at an agreed price; the right is purchased and if it is not exercised by a stated date the money is forfeited)