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Also known as financial derivative, derivative instrument, derivative security, derivative contract, derivatives
financial instrument whose value is based on one or more underlying assets
AI overview
A derivative is a financial investment whose value depends on the price of something else, like a stock, currency, or commodity. Derivatives matter because they allow people to hedge against price changes or speculate on future prices, though they can also carry significant risks if used improperly.
AI-generated from the Wikipedia summary — may contain errors.
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- Derivatives (finance)
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