Derivative

1. Derivative 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.

See also

• Derivative instrument
• Embedded derivative
• Greeks