Equity derivative
An equity derivative is a derivative contract that references the performance of one or more equities, or equity indices. Where more than one Share or Index is referenced, the technical term is a Basket.
It is most usually documented under the 2002 ISDA Equity Derivatives Definitions, and the place you should immediately visit is the Equity Derivatives Anatomy.
Types of equity derivative
- Equity swap contracts, which are generally total return swaps and related index swap contracts
- Option contracts
- Forward contracts