One value of an asset is derived from the one or more 
underlying assets 
Types of derivatives are 
1)Futures 
2)Forwards
3)Options
4)Swaps

Derivative is a financial product which value is derived 
from umderlying asset.

Derivative is a financial contract whose payoff structure 
is determined by the value of an Underlying  asset.

The underlyings may be Stocks,Financial 
indices,forex,Commodities,Bonds,interest rates etc.

Different variants of derivatives are 
Options,Forwards,futures,SWAPS,SWAPTIONS.

Derivative means nothins but group of securities. like 
furture forwards options swaps

Derivative is a financial asset,it does not have a any 
physical form but the physical form is depends up on the 
some other underlying assets.

ex; the BSE physical form depending on the 30 shars of 
differnt companies, here BSE is a derivative and 30 are 
underlying assets

Securities that derive their value from other financial 
instruments that are used by the insurance company to hedge 
its bets on which direction the market is moving. For 
example, cattle futures are a simple derivative in that the 
cattle futures contract increases or decreases in value as 
future prices change for cows on the hoof. When insurance 
companies use derivatives, they are more likely to use them 
in association with currency and interest rate transactions 
as a means of protecting themselves against adverse moves 
in interest rates or foreign currency exchanges. This 
instrument provides a mechanism for hedging against the 
interest rate risks that are inherent within insurance 
products by pricing in that risk in advance and protecting 
against future negative occurrences.