Derivative: Difference between revisions
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* [[Financial instrument]] | * [[Financial instrument]] | ||
* [[Greeks]] | * [[Greeks]] | ||
* [[ | * [[Interest rate derivative]] | ||
[[Category:Manage_risks]] | [[Category:Manage_risks]] | ||
[[Category:Financial_products_and_markets]] | [[Category:Financial_products_and_markets]] | ||
Revision as of 00:51, 12 August 2021
1. Financial instruments.
Abbreviation for derivative financial instrument.
2. Maths.
A derivative function describes the rate of change of the underlying function, with respect to changes in one of the variables in the underlying function.
- The first derivative describes the slope of the function curve at a given point on the curve.
- The second derivative describes the rate of change of the slope. In other words the degree of curvature, at a given point.
Most of the 'Greek letters' in options analysis are the first derivative of the option value, as the related value driver changes.
