derivatives
Secondary financial contracts
Derivatives are things derived from something else—secondary products or offshoots.
In finance, derivatives are contracts whose value derives from an underlying asset like stocks, bonds, or commodities: options and futures are common derivatives.
In calculus, a derivative measures how a function changes as its input changes—the rate of change at any point.
In chemistry, a derivative is a compound structurally related to another.
The word often implies something not original: The film felt like a derivative of better sci-fi.
Available courses of action
- futuresContracts for future delivery
- swapsMutual trades
- forwardsToward what lies ahead
- warrantsJustifies or legally permits
exchange-traded · strike price · expiration · premium · settlement · clearinghouse · counterparty · mark-to-market
Recognizing meaningful differences
- integralAntiderivative or crucial component
- chain ruleComposite function derivative method
- product ruleDerivative of multiplied functions
- gradientRate of change across space
Hessian · antiderivative · higher-order · slope · tangent · rate of change · infinitesimal · limit
Noncommittal maneuvering
- speculationUnproven theorizing or risky investment
- arbitrageExploiting price discrepancies
- leverageBorrowed capital for amplified returns
- marginEdge of a page
collateral · delta · gamma · theta · vega · rho · Greeks · position
Produced artificially, not natural
- byproductSecondary outcome of production
- compoundCombined into one
- petrochemicalProduct from crude processing
- polymerLarge repeated-unit molecule
ester · ether · aldehyde · ketone · precursor · analog · homolog · isomer
Word-part modifier
- prefixRoot-modifying front element
- suffixWord-ending addition
- morphemeSmallest meaningful language unit
- word formationCreating new vocabulary items
root · stem · base · productive · nominal · verbal · adjectival · agentive
options
Available courses of action
warrants · exchange-traded · strike price · expiration · premium · settlement · clearinghouse · counterparty · mark-to-market
differentiation
Recognizing meaningful differences
- integralAntiderivative or crucial component
- chain ruleComposite function derivative method
- product ruleDerivative of multiplied functions
gradient · Hessian · antiderivative · higher-order · slope · tangent · rate of change · infinitesimal · limit · continuity
hedging
Noncommittal maneuvering
- speculationUnproven theorizing or risky investment
- arbitrageExploiting price discrepancies
- leverageBorrowed capital for amplified returns
margin · collateral · delta · gamma · theta · vega · rho · Greeks · position · exposure
synthetic
Produced artificially, not natural
- byproductSecondary outcome of production
- compoundCombined into one
- petrochemicalProduct from crude processing
polymer · ester · ether · aldehyde · ketone · precursor · analog · homolog · isomer · metabolite
affix
Word-part modifier
- prefixRoot-modifying front element
- suffixWord-ending addition
- morphemeSmallest meaningful language unit
word formation · root · stem · base · productive · nominal · verbal · adjectival · agentive · diminutive
- drug discoverycompounds, SAR, scaffolds, inhibitors, agonists
- mathaddition, subtraction, multiplication, division, algebra
- mathematicsalgebra, arithmetic, calculus, geometry, number
- vocabularyword, words, new words, term, terms
- economicssupply and demand, inflation, GDP, GNP, gross domestic product
- financebank, CFO, banks, controller, finance
derivativesoriginals
Authentic first versions
sources · archetypes · prototypes · antecedents · foundations
- cocaine derivativeChemically altered coca extract
- first derivative
- covariant derivativeGeneralized derivative on manifolds
- derivative worksWorks based on originals
- partial derivativeDifferentiation fixing other variables
- financial derivativesContracts deriving value elsewhere