Set 283 · Study 1 / 5

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derivative

noun/dɪˈrɪvɪtɪv/

a financial instrument whose value is based on the value of another asset

The hedge fund invested heavily in various **derivatives** to hedge against market fluctuations.

securityfinancial contractoption
word origin — from Latin 'derivativus', from 'derivare' meaning 'to draw off' or 'to lead off'