Derivative (Derivat)
A financial product whose value depends on something else, such as a stock or index. Often with a high risk of loss.
In short
As of 8 October 2026A derivative is a financial product whose value depends on an underlying such as a stock, an index or gold. Examples are options, futures, warrants and CFDs. Professionals use them to hedge, while retail investors mostly speculate with leverage. Total losses in a short time are possible, and most retail investors lose money with them.
A derivative takes its price from an underlying, for example a stock, the DAX, a currency or gold. Well-known types are options, futures, warrants, knock-out certificates and CFDs.
Professionals often use derivatives to hedge. For retail investors they are mostly sold for speculation, often with leverage. Small price moves then have a big effect, and a total loss in a short time is possible. Many products have a fixed term and can expire worthless. Statistically, most retail investors lose money with leveraged derivatives.
Example: a knock-out certificate on the DAX with leverage 10 gains about 10 % when the DAX rises 1 %. If the DAX hits the knock-out barrier, the money is gone. Be wary of advertising, see our scam check.
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Sources
As of 8 October 2026 · Educational content, not investment or tax advice.