Main Entry: ¹de·riv·a·tive

Pronunciation: \di-ˈri-və-tiv\

Function: noun

Date: 15th century

1 : a word formed by derivation
2 : something derived
3 : the limit of the ratio of the change in a function to the corresponding change in its independent variable as the latter change approaches zero
4 a : a chemical substance related structurally to another substance and theoretically derivable from it b : a substance that can be made from another substance
5 : a contract or security that derives its value from that of an underlying asset (as another security) or from the value of a rate (as of interest or currency exchange) or index of asset value (as a stock index)