Financial Derivatives
/ˌfaɪˈnænʃəl ˈdɛrɪvətɪvz/
Definitions
- (n.) Financial instruments whose value is derived from underlying assets, indexes, or rates, used for risk management, speculation, or arbitrage.
The company hedged its currency exposure using financial derivatives.
Forms
- financial derivative
Related terms
See also
Commentary
Financial derivatives are complex instruments that require clear definitions in contracts to specify terms like underlying assets and settlement mechanisms.
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.