An EXCHANGETRADED DERIVATIVE or OVERTHECOUNTER DERIVATIVE with an UNDERLYING reference based on FOREIGN EXCHANGE rates and flows. A currency derivative can be structured as a currency OPTION, currency forward, CURRENCY FUTURE, CURRENCY SWAP, or CURRENCY WARRANT. See also COMMODITY DERIVATIVE, CREDIT DERIVATIVE, EQUITY DERIVATIVE, INTEREST RATE DERIVATIVE.
Link to This DefinitionDid you find this definition of CURRENCY DERIVATIVE helpful? You can share it by copying the code below and adding it to your blog or web page.
Written and fact checked by The Law Dictionary