Welcome to European Tribune. It's gone a bit quiet around here these days, but it's still going.
They are instruments that work off the back of the behavior of other financial instruments (derive from them). You could call them meta-securities, in a way.

For instance, the simplest derivatives are puts or calls, i.e. the right to buy or sell a share (or bond, or whatever) at a given price at a given date.

In the long run, we're all dead. John Maynard Keynes

by Jerome a Paris (etg@eurotrib.com) on Wed Jul 4th, 2007 at 12:27:10 PM EST
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