Derivative instrument and Online: Difference between pages

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A derivative instrument or contract is one whose value and other characteristics are derived from those of another asset or instrument (sometimes known as the Underlying Asset).
1.  


Derivative instruments are widely used by non-financial corporates for hedging purposes.
In the context of payment and settlement systems, this term may refer to the transmission of transfer instructions by users through such electronic means as computer-to-computer interfaces or electronic terminals, which are entered into a transfer processing system by automated means.




<span style="color:#4B0082">'''Example'''</span>
2.


A share option is a type of derivative contract, allowing the holder to buy shares at a certain predetermined strike price.  
The term may also refer to the storage of data by a transfer processing system on a computer database so that the user has direct access to the data (frequently in real time) through input/output devices such as terminals.


The value of the share option derives from the current price of the related underlying share relative to the option strike price.


3.


== See also ==
More generally, connected to another computer or electronic terminal. 
* [[CCR]]
 
* [[Collateral]]
For example, connected to the internet.
* [[Commodity risk]]
 
* [[CP]]
 
* [[Credit support annex]]
4. ''Retail''.
* [[Embedded derivative]]
 
* [[ETD]]
Retail offerings to consumers via the internet, rather than in a physical shop.
* [[FC]]
* [[Fixing instrument]]
* [[FVTOCI]]
* [[FVTPL]]
* [[Hedge fund]]
* [[Hedging]]
* [[IR]]
* [[ISDA Master Agreement]]
* [[Margining]]
* [[Mark to market]]
* [[Maturity]]
* [[Notional principal]]
* [[Option]]
* [[Outright]]
* [[Potential Future Exposure]]
* [[Replacement cost]]
* [[Strike price]]
* [[Tracker fund]]
* [[Transfer]]
* [[Underlying]]
* [[Underlying asset]]
* [[Underlying price]]
* [[XVA]]




===Other links===
== See also ==
*[http://www.treasurers.org/node/8599  Masterclass: Derivatives, The Treasurer, December 2012]
* [[Data]]
* [[Database]]
* [[Offline]]
* [[Omnichannel]]


[[Category:Risk_frameworks]]
[[Category:The_business_context]]
[[Category:Cash_management]]
[[Category:Financial_products_and_markets]]
[[Category:Liquidity_management]]
[[Category:Technology]]

Latest revision as of 12:19, 13 July 2022

1.

In the context of payment and settlement systems, this term may refer to the transmission of transfer instructions by users through such electronic means as computer-to-computer interfaces or electronic terminals, which are entered into a transfer processing system by automated means.


2.

The term may also refer to the storage of data by a transfer processing system on a computer database so that the user has direct access to the data (frequently in real time) through input/output devices such as terminals.


3.

More generally, connected to another computer or electronic terminal.

For example, connected to the internet.


4. Retail.

Retail offerings to consumers via the internet, rather than in a physical shop.


See also

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