Deposit Guarantee Scheme and Derivative: Difference between pages

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''Regulation.''
1.  ''Financial instruments.''


(DGS).
Abbreviation for derivative financial instrument.


A scheme that guarantees certain bank depositors' funds - subject to specified limits - should the bank fail.


2. ''Maths''. 


With effect from 2016, the guaranteed amount in the UK is limited to £75,000. (It was previously £85,000.)
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 limits were established as the approximate domestic currency equivalent of EUR 100,000.
*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.


The UK deposit guaranteee scheme is the Financial Services Compensation Scheme (FSCS), overseen by the Prudential Regulation Authority (PRA).


Most of the 'Greek letters' in options analysis are the first derivative of the option value, as the related value driver changes.


==See also==
* [[BIP]]
* [[DGSD]]
* [[Financial Services Compensation Scheme]]
* [[International Association of Deposit Insurers]]
* [[Prudential Regulation Authority]]
* [[Retail]]
* [[Stability]]


[[Category:Accounting,_tax_and_regulation]]
== See also ==
* [[Credit derivative]]
* [[Crypto-derivative]]
* [[Delta]]
* [[Derivative instrument]]
* [[Differentiation]]
* [[Embedded derivative]]
* [[Financial instrument]]
* [[Fixing derivative]]
* [[Greeks]]
* [[Interest rate derivative]]
 
[[Category:Manage_risks]]
[[Category:Financial_products_and_markets]]

Latest revision as of 09:21, 31 August 2022

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.


See also