# Derivative

*Derivatives & Options — Finicade finance glossary*

A contract whose value derives from something else — a stock, an interest rate, a barrel of oil. Futures, options and swaps are the big three. Used well they transfer risk to whoever wants it; used badly they concentrate it.

**Also known as:** derivatives

**Related terms:** [Option](https://finicade.com/glossary/option), [Futures Contract](https://finicade.com/glossary/futures-contract), [Swap](https://finicade.com/glossary/swap), [Hedging](https://finicade.com/glossary/hedging)

**Taught in:** Charter Climb — The Markets Exam

Source: https://finicade.com/glossary/derivative