What is derivative in SAP FIN-FSCM-TRM-TM - Transaction Manager?

SAP Term: derivative

• Component: FIN-FSCM-TRM-TM

• Component Name: Transaction Manager

• Description: A pending transaction derived from underlying transactions. A derivative can result in both fixed payments and "indeterminate" cash flows. In the latter case, the exact cash flow amount and date are unknown. The following product types can be mapped in the SAP System: OTC options currency options, currency barrier options, swaptions, interest rate guarantee, bond options Swaps interest rate, cross-currency interest rate Forward rate agreements Caps, floors Listed options and futures

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• Key Concepts: 
  Derivatives are financial instruments that derive their value from an underlying asset. In SAP Transaction Manager, derivatives are used to manage the risk associated with changes in the value of the underlying asset. Derivatives can be used to hedge against losses or to speculate on future price movements. 
  
  How to use it: 
  In SAP Transaction Manager, derivatives can be used to manage the risk associated with changes in the value of the underlying asset. Derivatives can be used to hedge against losses or to speculate on future price movements. Derivatives can be used to manage the risk associated with changes in interest rates, foreign exchange rates, commodity prices, and other market variables. 
  
  Tips & Tricks: 
  When using derivatives in SAP Transaction Manager, it is important to understand the risks associated with each type of derivative and how they can be used to manage risk. It is also important to understand the tax implications of using derivatives and how they may affect your overall financial position. 
  
  Related Information: 
  For more information on derivatives and how they can be used in SAP Transaction Manager, please refer to the SAP Help documentation or contact your local SAP representative.