# Chain Rule

*Math & Statistics — Finicade finance glossary*

The rule for differentiating a function of a function — multiply the outer slope by the inner one. Its stochastic cousin, Itô's lemma, is the beating heart of derivatives pricing.

**Also known as:** composite-function

**Related terms:** [Derivative (Calculus)](https://finicade.com/glossary/derivative-calculus), [Itô's Lemma](https://finicade.com/glossary/itos-lemma), [Taylor Series](https://finicade.com/glossary/taylor-series)

**Taught in:** Math Masters — The Chain Rule, Visually

Source: https://finicade.com/glossary/chain-rule