Derivative contract

Term · Insurance and risk management · MLC-T-INS-001138

A financial agreement between two or more parties whose value is contingent upon an underlying asset, such as a stock, bond, commodity, or currency. These contracts are used to manage financial risks by allowing parties to hedge against adverse price movements or to speculate on future market direction. Examples include futures, options, and swaps, which are often traded on organized exchanges or over-the-counter.

Table 1. Record
Identifier	MLC-T-INS-001138
Field	Insurance and risk management

Record as JSON

{
  "id": "MLC-T-INS-001138",
  "term": "Derivative contract",
  "field": "Insurance and risk management",
  "definition": "A financial agreement between two or more parties whose value is contingent upon an underlying asset, such as a stock, bond, commodity, or currency. These contracts are used to manage financial risks by allowing parties to hedge against adverse price movements or to speculate on future market direction. Examples include futures, options, and swaps, which are often traded on organized exchanges or over-the-counter.",
  "url": "https://mlchart.com/terminology/insurance/derivative-contract/"
}

Record 952 of 3,708 in Insurance and risk management terminology (MLC-0106). Request the full dataset.