DERIVATIVE INSTRUMENT
(noun)Definitions
There is 1 meaning of the phrase
Derivative Instrument.
Derivative Instrument - as a noun
A financial instrument whose value is based on another security
Synonyms (Exact Relations)
derivative17Hypernyms (Closely Related)
instrument12legal documentlegal instrumentofficial documentHyponyms (Broadly Related)
Example Sentences
"A derivative instrument is a financial contract whose value is derived from an underlying asset."
"Options and futures contracts are common examples of derivative instruments."
"Traders use derivative instruments to hedge against potential price fluctuations."
"Understanding the risks of derivative instruments is crucial for investors."
"The value of a derivative instrument may fluctuate based on market conditions."
