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OTC derivative vs derivative instrument

derivative instrument vs OTC derivative

OTC derivative and derivative instrument both are nouns.

Word NounAdjectiveVerbAdverb
OTC derivative Yes No No No
derivative instrument Yes No No No
As nouns, derivative instrument is a hypernym of OTC derivative; that is, derivative instrument is a word with a broader meaning than OTC derivative:
  • OTC derivative: contracts that are traded (and privately negotiated) directly between two parties, without going through an exchange or other intermediary.
  • derivative instrument: a financial instrument whose value is based on another security
Other hypernyms of OTC derivative include derivative.
OTC derivative (noun) derivative instrument (noun)
contracts that are traded (and privately negotiated) directly between two parties, without going through an exchange or other intermediary. a financial instrument whose value is based on another security
Difference between OTC derivative and derivative instrument

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