derivative instruments
[/dɪˈrɪvətɪv ˈɪnstrəmənts/]
nounpl: derivative instruments
instrumentos derivativos
1. Financial contracts whose value is derived from the value of underlying assets such as stocks, bonds, commodities, currencies, or interest rates
Derivative instruments like futures and options are commonly used for hedging and speculation.
Instrumentos derivativos como futuros e opções são comumente usados para proteção e especulação.
2. Complex financial products used by investors and institutions to manage risk or gain exposure to various markets
The bank's portfolio includes various derivative instruments to optimize returns.
A carteira do banco inclui vários instrumentos derivativos para otimizar retornos.
3. Securities or contracts that derive their value indirectly from other underlying assets rather than having intrinsic value
Derivative instruments played a significant role in the 2008 financial crisis.
Os instrumentos derivativos desempenharam um papel significativo na crise financeira de 2008.
Derivative instruments are central to modern finance in both Brazil and the USA. In Brazil, the B3 exchange actively trades derivatives, and their use became more prominent after financial market liberalization. In the USA, derivatives are heavily regulated by the SEC and CFTC. The 2008 financial crisis highlighted the systemic risks associated with complex derivatives, leading to increased regulatory scrutiny in both countries. Understanding derivatives is essential for investors, risk managers, and financial professionals in both markets.
NYC Slang
derivs (informal abbreviation used in trading floors)
Related Idioms & Phrases
playing with derivatives (taking excessive risk with complex financial instruments)
derivative bubble (market conditions where derivative prices become disconnected from underlying values)
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