Derivative: meaning, definitions and examples

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derivative

[ dɪˈrɪv.ə.tɪv ]

^{Context #1}

finance

A financial instrument whose value is derived from an underlying asset, index, or rate. Derivatives can be used for hedging, speculation, or investment purposes.

Synonyms

financial instrument, futures contract, option

Examples of usage

Investors use derivatives to manage risk in their portfolios.
She bought a derivative that tracks the performance of the S&P 500 index.

^{Context #2}

mathematics

Obtained by differentiation; derived from another source or element.

Synonyms

derived, imitative, secondary

Examples of usage

The derivative function of f(x) is denoted as f'(x).
The novel was a derivative work inspired by classic literature.

Translations

Translations of the word "derivative" in other languages:

🇵🇹 derivada

🇮🇳 डेरिवेटिव

🇩🇪 Ableitung

🇮🇩 turunan

🇺🇦 похідна

🇵🇱 pochodna

🇯🇵 導関数

🇫🇷 dérivée

🇪🇸 derivada

🇹🇷 türev

🇰🇷 도함수

🇸🇦 مشتق

🇨🇿 derivát

🇸🇰 derivát

🇨🇳 导数

🇸🇮 odvod

🇮🇸 afleiðing

🇰🇿 туынды

🇬🇪 წარმოებული

🇦🇿 törəmə

🇲🇽 derivada

Word origin

The word 'derivative' originated from the Latin word 'derivare', meaning 'to derive'. In the financial context, derivatives have been used since ancient times with the first recorded options trading taking place in ancient Greece. The modern usage of derivatives in finance began to gain popularity in the late 20th century with the development of more complex financial instruments.

See also: derivable, derivation, derive, derived.