The difference between Derivative and Total return swap

When used as nouns, derivative means something derived, whereas total return swap means a financial derivative that transfers both the credit risk and market risk of an underlying asset.

Derivative is also adjective with the meaning: obtained by derivation.

check bellow for the other definitions of Derivative and Total return swap

  1. Derivative as an adjective:

    Obtained by derivation; not radical, original, or fundamental.

    Examples:

    "a derivative conveyance; a derivative word"

  2. Derivative as an adjective:

    Imitative of the work of someone else.

  3. Derivative as an adjective (legal, copyright):

    Referring to a work, such as a translation or adaptation, based on another work that may be subject to copyright restrictions.

  4. Derivative as an adjective (finance):

    Having a value that depends on an underlying asset of variable value.

  5. Derivative as an adjective:

    Lacking originality.

  1. Derivative as a noun:

    Something derived.

  2. Derivative as a noun (linguistics):

    A word that derives from another one.

  3. Derivative as a noun (finance):

    A financial instrument whose value depends on the valuation of an underlying asset; such as a warrant, an option etc.

  4. Derivative as a noun (chemistry):

    A chemical derived from another.

  5. Derivative as a noun (calculus):

    The derived function of a function (the slope at a certain point on some curve f(x))

    Examples:

    "The derivative of <math>f:f(x) = x^2</math> is <math>f':f'(x) = 2x</math>"

  6. Derivative as a noun (calculus):

    The value of this function for a given value of its independent variable.

    Examples:

    "The derivative of <math>f(x) = x^2</math> at x = 3 is <math>f'(3) = 2 * 3 = 6</math>."

  1. Total return swap as a noun (finance):

    A financial derivative that transfers both the credit risk and market risk of an underlying asset.

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