# Derivative
A derivative is a type of financial contract whose value is dependent on an *underlying* asset, basket of assets, or a benchmark of other assets.

Underlying for derivatives are most often [stocks](stock.md), [bonds](bond.md), [commodites](commodity.md), [currencies](currency.md), debt and market indexes. The value of the contract itself depend on changes in the prices of the underlying asset. 

A derivative is a type of [financial asset](financial-asset.md). Derivatives have no [use value](use-value.md). Their [fundamental value](fundamental-value.md) and demand is generated from their the demand of the underlying.

Examples of derivatives products:

* Futures
* Forwards
* Swaps
* Options
* Interest Rate Swaps
* [Credit Default Swaps](cds.md)

## References
1. Wilmott, Paul. Paul Wilmott introduces quantitative finance. John Wiley & Sons, 2007.
1. Grinold, Richard C., and Ronald N. Kahn. Active portfolio management: Quantitative theory and applications. Probus, 1995.
1. Roche, Cullen O. 2011. ‘Understanding the Modern Monetary System’. http://ssrn.com/paper=1905625.
1. Braun, Benjamin, and Daniela Gabor. 2019. ‘Central Banking, Shadow Banking, and Infrastructural Power’. https://doi.org/10.31235/osf.io/nf9ms.