derivative productnoun [ C ]
ukusSTOCK MARKET, FINANCEa derivative :
Companies minimize risks by buying a derivative product which provides the right to buy or sell the underlying equity at a fixed price on a future date.
a financial product that is created by making changes to an existing product:
Certain derivative products held by life insurers require their holders to sell stocks when the Nikkei falls below about 12,600.