# Definition of 'derivative'

1. countable noun

A derivative is something which has been developed or obtained from something else.

...a poppy-seed derivative similar to heroin.

This isn't an entirely new car, but a new derivative of the Citroen XM.

2. adjective

If you say that something is derivative, you are criticizing it because it is not new or original but has been developed from something else.

[disapproval] ...their dull, derivative debut album.

A lot of what you see in stand-up comedy today is very derivative.

COBUILD Advanced English Dictionary. Copyright © HarperCollins Publishers

## Video: pronunciation of 'derivative'

noun

4.

a term, idea, etc, that is based on or derived from another in the same class

5.

a word derived from another word

6. chemistry

a compound that is formed from, or can be regarded as formed from, a structurally
related compound

chloroform is a derivative of methane

7. mathematics

a. Also called: differential coefficient, first derivative

the change of a function, f(x), with respect to an infinitesimally small change in the independent variable, x; the limit of [f(a + Δx)–f(a)]/Δx, at x = a, as the increment, Δx, tends to 0. Symbols: df(x)/dx, f′(x), Df(x)

the derivative of xn is nxn–1

b.

the rate of change of one quantity with respect to another

velocity is the derivative of distance with respect to time

8. finance

a. (usually plural)

b.

(as modifier)

a derivatives trader

9. psychoanalysis

an activity that represents the expression of hidden impulses and desires by channelling them into socially acceptable forms

Collins English Dictionary. Copyright © HarperCollins Publishers

Derived forms

adverb

adjective

1.

derived

2.

using or taken from other sources; not original

3.

of derivation

noun

4.

something derived

5. Chemistry

a substance derived from, or of such composition and properties that it may be considered as derived from, another substance by chemical
change, esp. by the substitution of one or more elements or radicals

6. Finance

a contract, as an option or futures contract, whose value depends on the value of the securities, commodities, etc. that form the basis of the contract

7. Linguistics

a word formed from another or others by derivation

8. Ancient Mathematics

the limiting value of a rate of change of a function with respect to a variable;
the instantaneous rate of change, or slope, of a function (Ex.: the derivative of y with respect to x, often written dy/dx, is 3 when y = 3x)

Webster’s New World College Dictionary, 4th Edition. Copyright © 2010 by
Houghton Mifflin Harcourt. All rights reserved.

Derived forms

adverb

Word origin of 'derivative'

Word Frequency

## derivative in Finance

(dɪrɪvətɪv)Word forms: (regular plural) derivatives

noun

(Finance: Investment)

A derivative is an investment that depends on the value of something else.

Interest rate derivatives are used in structured finance transactions to control interest rate risk with respect
to changes in the level of interest rates. Typically, derivatives are significantly more volatile than the underlying securities on which they are
based. A derivative is an investment that depends on the value of something else.

Collins English Dictionary. Copyright © HarperCollins Publishers

## Example sentences containing 'derivative'

These examples have been automatically selected and may contain sensitive content.
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Brussels last week launched an in-depth inquiry into the deal, saying it could reduce competition in bond and derivatives trading. Times, Sunday Times (2016)They can also use derivatives such as futures and options to hedge their holdings. Times, Sunday Times (2006)Chinese lenders are really inexperienced in investment in financial derivatives. Times, Sunday Times (2008)We have some derivatives as a form of insurance to decrease the potential volatility on the downside. Times, Sunday Times (2008)The positions have been built up either through complex derivatives deals or outright share purchases. Times, Sunday Times (2015)The range of derivatives and other instruments cleared has been expanded. Times, Sunday Times (2009)Much of the deficit was due to losses on foreign exchange and derivatives deals. Times, Sunday Times (2012)Clearing takes up a significant portion of the cost of dealing in derivatives. Times, Sunday Times (2015)They are mysterious beasts that use derivatives and other strange tools to make millionaires out of their managers. Times, Sunday Times (2007)They are all referred to as derivative instruments because their value depends on the value of another
asset. Principles of Corporate Finance (1991)Nor were there any derivatives traders in the Shard then. Times, Sunday Times (2016)In our view, derivatives are financial weapons of mass destruction. Times, Sunday Times (2008)Like other high explosives, derivatives have their uses. Times, Sunday Times (2006)But experts say the true figure will be far higher because banks are caught up in a web of complex derivative deals and loans. The Sun (2011)The desire to avoid these problems has spawned two other financial derivatives widely used to manage risk: options and swaps. Financial Markets, Institutions and Money (1995)And with derivative prices suggesting the low point to be sometime next year, the worst may very well be behind us. Times, Sunday Times (2009)They also failed to reflect the impact of fuel hedging, where airlines use financial derivatives to protect themselves against future price increases. Times, Sunday Times (2006)The clearing house processes transactions in bonds, derivatives, foreign exchange and commodities. Times, Sunday Times (2012)The Hole is a meaningless exercise in 3-D form over derivative content. Times, Sunday Times (2010)Like anything else - if you are trading derivatives or bonds - it is about information. Times, Sunday Times (2016)It is difficult to gauge likely returns as they are based on complex financial instruments called derivatives - effectively financial bets on how the index performs. Times, Sunday Times (2010)It is understood that these do not include the range of bonds, derivatives and foreign exchange products
in which the company already provides dealing facilities. Times, Sunday Times (2007)It acts as a go-between for banks seeking anonymity when trading bonds, derivatives or equities. Times, Sunday Times (2006)That is because many more financial derivatives will be forced to trade through central
exchanges and clearing houses, transferring credit risk to a centrally managed system. Times, Sunday Times (2014)Britain does need the sort of jobs provided by manufacturing - we can't all be derivatives traders or hedge fund managers. Times, Sunday Times (2008)

## Trends of 'derivative'

In Common Usage. derivative is one of the 10000 most commonly used words in the Collins dictionary

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## Translations for 'derivative'

British English: derivative NOUN

A

*derivative*is something which has been developed or obtained from something else....a poppy-seed derivative.

## Nearby words of 'derivative'

## Related Terms of 'derivative'

## Source

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