ENGLISH
REFERENCE

derivative

n. countable
C1 Advanced US //dɝˈɪvətɪv// UK //dɪɹˈɪvətˌɪv// de·riv·a·tive

n. something that comes from or is based on another source. In finance, it is a contract whose value depends on the price of something else, like gold or stocks.

n. something that is based on or derived from another source. In a financial context, refers to a contract or security whose value is determined by an underlying asset or benchmark.


SIMPLE

The new drug is a chemical derivative of a plant extract.

CONTEXTUAL

Investors use financial derivatives like options and futures to protect themselves against sudden changes in market prices.

COMPLEX

While the artist's early work was criticized as being a mere derivative of French Impressionism, her later pieces established a unique and influential visual language.

Synonyms
Origin

From Middle French dérivatif, from Latin dērīvātus, perfect passive participle of dērīvō (“to derive”). Related to derive; by surface analysis, derive + -ative.

Usage

Often followed by the preposition 'of' to indicate the source material or underlying asset.

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