Gadit

derivative

Definitions (3)
1nounA financial instrument whose value is based on the value of another asset, such as a stock, bond, or commodity.
The investor used derivatives to hedge against potential losses.
Derivatives can be complex financial products.
Many traders specialize in trading derivatives.
2nounSomething that is based on another source, often lacking originality.
The movie was criticized for being a derivative of earlier films.
His artwork was seen as derivative, lacking unique style.
The band's music was derivative of s pop.
3nounIn mathematics, a derivative represents the rate at which a function is changing at any given point.
Calculating the derivative of a function is a fundamental skill in calculus.
The derivative of a constant is zero.
Understanding derivatives is crucial for solving complex equations.
Word Origin
Language
Latin
Original word
derivativus
Word parts
de (down, away) + rivus (stream)
Originally meant
something derived from a source
Background
The term 'derivative' in the financial sense became widely used in the late 20th century as financial markets developed complex instruments. In mathematics, derivatives have been a fundamental concept since the development of calculus in the 17th century.