derivative: Meaning and Definition of

de•riv•a•tive

1. derived.
2. not original; secondary.

1. something derived.
2. Also calleda form that has undergone derivation from another, as atomic from atom.
3. a substance or compound obtained from, or regarded as derived from, another substance or compound.
4. Also calledthe limit of the ratio of the increment of a function to the increment of a variable in it, as the latter tends to 0; the instantaneous change of one quantity with respect to another, as velocity, which is the instantaneous change of distance with respect to time. Cf. first derivative, second derivative.
5. a financial contract whose value derives from the value of underlying stocks, bonds, currencies, commodities, etc.