derivatives

Trading contracts whose price comes from something else, like a share or gold, instead of owning the thing itself.

The fuller meaning

Contracts whose value derives from an underlying asset, index or rate, such as futures and options. They allow leverage and hedging but can magnify losses beyond the deposit; regulators limit retail access differently by country, and India taxes F&O trading as business income.

derivatives, also called derivative.

derivatives

The fuller meaning

Related words