What is another word for derivative instrument?
Pronunciation: [dɪɹˈɪvətˌɪv ˈɪnstɹəmənt] (IPA) 
A derivative instrument, also known as a financial derivative, is a security whose value is dependent on the value of an underlying asset. There are numerous synonyms for the term derivative instrument, including financial contract, derivative product, derivative security, structured product, and hedging instrument. These synonyms are all used to describe the same type of financial security that is traded on various financial markets worldwide. The use of derivatives can be complex and risky, but they are often used to manage various risks associated with investment portfolios. As a result, financial institutions and investors frequently use derivative instruments to hedge against potential losses and volatility in the financial markets.
