DERIVATIVE CONTRACT Definition

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DERIVATIVE CONTRACT is, generally, a financial contract the value of which is derived from the values of one or more underlying assets, reference rates, or indices of asset values, or credit-related events. Derivative contracts include interest rate, foreign exchange rate, equity, precious metals, commodity, and credit contracts, and any other instruments that pose similar risks. See DERIVATIVE.

Learn new Accounting Terms

NOMINAL VALUE is the par, or face, value of something e.g. a share issue.

BOOKING, in import / export, is an arrangement with a shipping company to load and carry a shipment.

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