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What is derive?

Updated: 10/18/2021
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Wiki User

6y ago

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derivable

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Al Leuschke

Lvl 10
2y ago
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13y ago

A security whose price is dependent upon or derived from one or more underlying assets. The derivative itself is merely a contract between two or more parties. Its value is determined by fluctuations in the underlying asset.

The most common underlying assets include stocks, bonds, commodities, currencies, interest rates and market indexes. Most derivatives are characterized by high leverage.Derivatives are generally used as an instrument to hedge risk, but can also be used for speculative purposes.

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13y ago

In standard speech, to derive from something simply means to come from something after it has been manipulated or changed.

In algebra, deriving is a common method of manipulating formulas to come up with another representation of the same idea or a combination of ideas.

In calculus, a derivative is a function which expresses the rate of change for another function (its antiderivative) across the entire domain.

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13y ago

The easiest way I can explain it is something like this: Take a Grape Farm. Grapes would be a derivitive of the farm, then Wine would be a derivitive of the grapes and so on and so on....

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