A derivative is a financial instrument that derives its value from an underlying asset. The underlying asset can be equity, currency, commodities, or interest rate. Thus, a change in the underlying ...
What are derivatives (and why are they called that)? A derivative is a contract that derives its value and risk from a particular security (like a stock or commodity)—hence the name derivative.
James Chen, CMT is an expert trader, investment adviser, and global market strategist. Chip Stapleton is a Series 7 and Series 66 license holder, CFA Level 1 exam holder, and currently holds a Life, ...