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English definition of “derivative”

derivative

noun [C, usually plural]
 
 
/dɪˈrɪvətɪv/ (also derivative instrument, also derivative product)
STOCK MARKET, FINANCE a financial product such as an option (= the right to buy or sell something in the future) that has a value based on the value of another asset, such as shares, or bonds: GS Financial Products buys and sells derivatives such as swaps and options linked to interest rates, currencies, commodities and indexes. derivatives trading In the past 20 years there has been a huge growth in the derivatives markets.
(Definition of derivative from the Cambridge Business English Dictionary © Cambridge University Press)
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