equity derivative
[/ˈɛkwɪti dɪˈrɪvətɪv/]
nounpl: equity derivatives
derivativo de ações
1. A financial instrument whose value is derived from the price movements of underlying stocks or stock indices
The trader invested heavily in equity derivatives to hedge against market volatility.
O trader investiu pesadamente em derivativos de ações para se proteger contra a volatilidade do mercado.
2. A contract that allows investors to speculate on or hedge exposure to equity market movements without owning the underlying shares
Options and futures are common types of equity derivatives.
Opções e futuros são tipos comuns de derivativos de ações.
3. Financial products including options, warrants, swaps, and forwards based on equity securities
The bank launched a new equity derivative product for institutional investors.
O banco lançou um novo produto de derivativo de ações para investidores institucionais.
Equity derivatives are fundamental instruments in modern financial markets. In Brazil, they are actively traded on B3 and regulated by CVM (Comissão de Valores Mobiliários). In the USA, they are heavily regulated by the SEC and CFTC. The term is primarily used in professional financial contexts and is essential knowledge for investors, traders, and financial professionals in both countries.
Related Idioms & Phrases
playing the derivatives market
hedging with equity derivatives
leveraging equity derivatives
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