Difference between revisions of "Derivatives (finance)"
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m (DavidB4 moved page Derivatives to Derivatives (finance): clarifying content) |
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| − | + | ::<small>For mathematical derivatives, see: [[Derivative (calculus)]]</small> | |
'''Derivatives''' are financial instruments that derive their value from underlying assets. Derivatives can be traded (bought and sold) in a manner similar to [[stock]]. Derivatives include [[futures]], [[options]] and [[swaps]]. | '''Derivatives''' are financial instruments that derive their value from underlying assets. Derivatives can be traded (bought and sold) in a manner similar to [[stock]]. Derivatives include [[futures]], [[options]] and [[swaps]]. | ||
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Derivatives can be traded on a financial exchange, or in an over-the-counter (OTC) market. | Derivatives can be traded on a financial exchange, or in an over-the-counter (OTC) market. | ||
| − | == Math == | + | <!--== Math == |
''(main article: [[Derivative]])'' | ''(main article: [[Derivative]])'' | ||
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v(x) = p'(x) <nowiki>[shorthand for derivative of p(x) = 6x + 6]</nowiki> | v(x) = p'(x) <nowiki>[shorthand for derivative of p(x) = 6x + 6]</nowiki> | ||
a(x) = v'(x) = 6 | a(x) = v'(x) = 6 | ||
| − | Thus, if x = 4, assuming the MKS units system for physics, the displacement is 77 m, the velocity is 30 m/s, and the acceleration is 6 m/s<sup>2</sup>. | + | Thus, if x = 4, assuming the MKS units system for physics, the displacement is 77 m, the velocity is 30 m/s, and the acceleration is 6 m/s<sup>2</sup>. --> |
{{Economic preparedness topics}} | {{Economic preparedness topics}} | ||
Latest revision as of 21:05, September 8, 2020
- For mathematical derivatives, see: Derivative (calculus)
Derivatives are financial instruments that derive their value from underlying assets. Derivatives can be traded (bought and sold) in a manner similar to stock. Derivatives include futures, options and swaps.
The value and prices of derivatives depends on the fluctuating value of the underlying asset. But as derivatives become more important, their trading can influence the underlying asset pricing.
Derivatives range from the exotic to the mundane. Famously, Barclay's Bank trading in derivatives almost lead to their bankruptcy, but the purchase of a simple forward currency contract is also dealing in a derivative.
Derivatives can be traded on a financial exchange, or in an over-the-counter (OTC) market.
