derivative
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derivative
In finance, a financial instrument whose value is derived from the price of another product (underlying asset), such as a stock or a commodity.
Der Handel mit Derivaten ist sehr spekulativ und birgt hohe Risiken.
Trading derivatives is very speculative and carries high risks.
All meanings of 'Derivat' (derivative) share a common idea that comes from the Latin word 'derivare' (to derive). A derivative is always something that has been derived or developed from an original thing.
Man kann die Bedeutung des Wortes aus seiner Herkunft ableiten.
You can derive the meaning of the word from its origin.
In a financial context, a 'Derivat' (derivative) is a specific product whose value depends on another value (e.g. a stock price). You can recognize this meaning from words like 'Handel' (trading), 'Börse' (stock exchange), 'Aktien' (stocks), or 'Risiko' (risk).
Banken handeln oft mit komplexen Derivaten, um sich gegen Preisschwankungen abzusichern.
Banks often trade complex derivatives to hedge against price fluctuations.
In chemistry, a 'Derivat' (derivative) refers to a chemical compound that has arisen from another one. The context is made clear by terms like 'Substanz' (substance), 'Molekül' (molecule), or 'chemische Reaktion' (chemical reaction).
Aspirin ist ein bekanntes Derivat der Salicylsäure.
Aspirin is a well-known derivative of salicylic acid.
When words and language are involved, a 'Derivat' (derivative) is a derived word. This meaning is more general and can also be used for other derived products or ideas.
Das deutsche Wort 'Fenster' ist ein frühes Derivat des lateinischen 'fenestra'.
The German word 'Fenster' (window) is an early derivative of the Latin 'fenestra'.
option
'die Option' and 'das Derivat' can both occur in finance. An option there is a specific right to buy or sell something later at a fixed price. A derivative is more general: its value depends on the price of another product. So an option can be a derivative, but not every derivative is an option. The words can be confused because they are used in the same financial context. In everyday language, however, 'Option' usually simply means 'possibility' and then has nothing to do with a derivative.
Dieses Derivat ist riskant, weil sein Wert stark vom Ölpreis abhängt.
This derivative is risky because its value depends heavily on the price of oil.
Der Anleger kauft eine Option auf diese Aktie, weil er auf steigende Kurse hofft.
The investor buys an option on this stock because he hopes prices will rise.