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derivative instrument vs OTC derivative

OTC derivative vs derivative instrument

derivative instrument and OTC derivative both are nouns.

Word NounAdjectiveVerbAdverb
derivative instrument Yes No No No
OTC derivative Yes No No No
As nouns, OTC derivative is a hyponym of derivative instrument; that is, OTC derivative is a word with a more specific, narrower meaning than derivative instrument:
  • derivative instrument: a financial instrument whose value is based on another security
  • OTC derivative: contracts that are traded (and privately negotiated) directly between two parties, without going through an exchange or other intermediary.
Other hyponyms of derivative instrument include futures contract, option, over-the-counter derivative.
derivative instrument (noun) OTC derivative (noun)
a financial instrument whose value is based on another security contracts that are traded (and privately negotiated) directly between two parties, without going through an exchange or other intermediary.
Difference between derivative instrument and OTC derivative

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