WordValederivative
a financial contract whose value depends on an underlying asset
In more detail
1. (adjective) based on or copied from something else rather than being original
2. (noun) something that is based on or comes from something else
3. (noun) a financial product whose value depends on the value of something else, such as stocks or currencies
Examples
- 1. The artist was criticized for creating derivative work that copied famous paintings.
- 2. The movie is a derivative of the original book.
- 3. The bank sells derivatives that allow investors to bet on oil prices.
How to use derivative
As an adjective, derivative describes something lacking originality and suggesting it copies or adapts from an earlier source, often with negative connotations. As a noun in general usage, it denotes something that stems from or is based on something else. In finance, a derivative is a technical term for contracts whose value is determined by underlying assets like commodities, currencies, or stocks.
Common phrases
- derivative work
- derivative product
- financial derivative
- derivative claim
- highly derivative
- somewhat derivative
Synonyms
imitative · secondary · borrowed · unoriginal · adapted
Opposites
original · primary · innovative
Word family
derive · derivation · derivatively · underivative
A common mistake
Learners sometimes confuse derivative with derogatory; derivative means based on something else, not disparaging or disrespectful.
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