derivative instrument

Noun
  1. A financial instrument whose value is based on another security (synset 106492177)
    referred to in: jurisprudence, law - the collection of rules imposed by authority
    is a type of: instrument, legal document, legal instrument, official document - (law) a document that states some contractual relationship or grants some right
    subtypes:
    • 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
    same as: derivative

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