单词 | derivative |
释义 | derivative derivative A financial instrument, the price of which has a strong relationship with an underlying commodity, currency, economic variable, or financial instrument. The main types of derivatives are futures contracts, forwards (seeforward dealing), swaps, and options. They are traded on derivative markets or over the counter (OTC). The market-traded derivatives are standard, while the OTC trades are specific and customized. The 1990s and 2000s saw massive growth in the market for complex derivatives products and the lack of transparency associated with these instruments is seen as a major factor in the global financial collapse of 2008 (seecollateralized debt obligation). See alsosecuritization; structured finance. |
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