derivative instrument

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ThesaurusAntonymsRelated WordsSynonymsLegend:
Noun1.derivative instrument - a financial instrument whose value is based on another security
legal document, legal instrument, official document, instrument - (law) a document that states some contractual relationship or grants some right
futures contract - an agreement to buy or sell a specific amount of a commodity or financial instrument at a particular price on a stipulated future date; the contract can be sold before the settlement date
law, jurisprudence - the collection of rules imposed by authority; "civilization presupposes respect for the law"; "the great problem for jurisprudence to allow freedom while enforcing order"
option - the right to buy or sell property at an agreed price; the right is purchased and if it is not exercised by a stated date the money is forfeited
Based on WordNet 3.0, Farlex clipart collection. © 2003-2012 Princeton University, Farlex Inc.
References in periodicals archive ?
Buyers, sellers and traders in this active and growing international market will now be able to manage their price risk effectively by using a cleared derivative instrument.
Finally, why do insiders select a particular derivative instrument?
Hedging involves the use of a derivative instrument (e.g., an interest-rate swap) to offset the effect of market changes on a given asset, liability, or future cash flow (e.g., the anticipated future purchase of commodities).
The financial derivative instrument on the new agreement with Barclays is more favourable with an interest rate cap at 3% for the next two years - although it is currently benefiting from the historic low 0.5% base rate.
In a derivative instrument you are betting about the future value of the underlying asset or reference.
If a proportion of the derivative instrument is designated and qualify in as a hedging instrument and a proportion is not designated and qualifying as a hedging instrument, an entity would allocate the related amounts to the appropriate categories within the disclosure table.
The statement provides for complex analyses designed to match the timing of gain or loss recognition on the derivative instrument with the recognition of:
Even more important though, we talk with the derivatives people each quarter to find out what the company is trying to protect against and whether the derivative instrument was successful.
The Board considers it important that an entity not be able to avoid the recognition and measurement requirements of this Statement merely by embedding a derivative instrument in a nonderivative financial instrument or other contract.
The derivative instrument, which offers credit protection, will only be permitted to insurers as users or protection buyers of CDS.
* Definition of derivative instruments focusing on the distinguishing characteristics of a derivative instrument: