Derivative

Definition

The word "derivative" as an adjective means (1) imitative of another’s work; and (2) originating from something else. As a noun, it denotes (3) something derived from another source; (4) (mathematics) the instantaneous rate of change of a function; and (5) (finance) a contract whose value is based on an underlying asset.

Parts of Speech

• Adjective
• Noun

Pronunciation

American English

• IPA: /dɪˈrɪvətɪv/
• Respelling: dih-RIV-uh-tiv

British English

• IPA: /dɪˈrɪvətɪv/
• Respelling: dih-RIV-uh-tiv

Etymology

From Latin derivativus “drawing off,” from the past-participle stem of derivare “to derive, draw off” (de- “from” + rivus “stream”). Entered English in the late 16th century.

Derivatives

• Derivation (noun)
• Derivational (adjective)
• Derivatively (adverb)

Synonyms

• Unoriginal (adj.)
• Imitative (adj.)
• Byproduct (noun)
• Differential (noun, math)
• Contract (noun, finance)

Antonyms

• Original
• Innovative
• Fundamental

Usage

"Derivative" appears in art criticism, mathematics, and finance. Examples: "The plot felt derivative of earlier films," "Compute the derivative of f(x)=x²," and "He hedges risk with commodity derivatives."

Related Terms

• Derive: To obtain from a source.
• Derivation: The act of deriving.
• Differentiation: The process of finding a derivative.
• Underlying asset: The reference asset for a derivative contract.

Detailed Definitions

Adjective

• Imitative of another’s work; lacking originality:
  • Example: "The sequel was criticized as too derivative and uninspired."
• Originating from or based on something else:
  • Example: "His theory is derivative of earlier research."

Noun

• Something derived from another source:
  • Example: "Many English words are derivatives of Latin."
• (Mathematics) The instantaneous rate of change of a function:
  • Example: "Find the derivative of sin x."
• (Finance) A contract whose value is based on an underlying asset:
  • Example: "The bank trades equity derivatives to manage risk."