Lisäjohdannainen

Lisäjohdannainen is a Finnish term that translates to "additional derivative" or "further derivative." In financial contexts, it refers to a financial instrument whose value is derived from an underlying asset, but which is itself based on another derivative instrument. This creates a layered structure where the ultimate value is tied to an original asset, but through a chain of financial products.

These instruments are often complex and carry higher risks than simpler derivatives. They can be used for various purposes, including speculation, hedging, or creating customized risk profiles. For instance, a lisäjohdannainen might be a type of option whose payoff depends on the performance of another option, or a swap linked to the value of a futures contract.

The existence of lisäjohdannaiset can make the financial markets more intricate and potentially amplify volatility. Understanding the specific nature of the underlying derivatives and the terms of the lisäjohdannainen itself is crucial for anyone involved with these instruments. Due to their complexity, they are typically traded by sophisticated investors and institutions rather than retail individuals. Their creation and trading are subject to regulatory oversight, although the specific regulations can vary significantly across jurisdictions. The term highlights the multi-layered nature of some modern financial engineering.