Derivatives
By CoinGecko | Updated on Mar 03, 2020
Derivatives are financial instruments whose value is derived from an underlying asset (e.g. Crude Oil, Gold, Bitcoin etc). Compared to spot markets where the underlying asset changes ownership, in derivatives markets, traders trade contracts rather than the actual assets.
Related Terms
Buy/Sell Tax
On-chain buy or sell tax rate where a percentage of the tokens bought/sold will be transferred to a set address.
Collateralized Debt Obligation (CDO)
A collateralized debt obligation (CDO) is a form of derivative in which the value is generated from another underlying asset, and is sold to institutional investors.
Ponzi Scheme
A Ponzi scheme is also referred to as pyramid scheme, and typically takes the form of an investment scheme which pays existing investors with funds collected from new investors.
Decentralized Applications (dApps)
Applications that run on decentralized peer-to-peer networks such as Ethereum.
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