derivatives

Financial instruments whose value is derived from an underlying asset, index, or rate — including futures, options, swaps, and forwards. Used for hedging risk or for speculation.

• derivative/dɪˈrɪvətɪv/(adj/n)衍生的/衍生品
• derive/dɪˈraɪv/(v)衍生

• financial derivatives
• derivatives market
• derivatives trading
• credit derivatives
• over-the-counter derivatives
• derivatives risk

1. 1.An airline might buy fuel futures (a derivative) to lock in today's jet fuel price for next year, protecting against a price spike — this is hedging. (risk management)
2. 2.Warren Buffett called derivatives "financial weapons of mass destruction" — the 2008 crisis proved him right when credit default swaps amplified a housing downturn into a global financial collapse. (systemic risk)

• financial instruments (broader category)
• hedging tools (when used for risk management)

from Latin "derivare" (to lead away, to draw off) — "de" (from) + "rivus" (stream) — value drawn from another source