Derivatives
/ˈdɛrəˌtɪvz/
Definitions
- (n.) Financial contracts whose value depends on the performance of underlying assets, indexes, or rates.
The fund uses derivatives to hedge against currency risk.
- (n.) Rights or claims derived from another source, such as property rights obtained through an original grant.
The leasehold interest is a derivative right based on the original property title.
Forms
- derivative
Related terms
See also
Commentary
In legal drafting, distinguish derivatives as financial instruments from derivative rights in property law to avoid ambiguity.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.