--- title: "Meaning & Key Takeaway of: A futures contract is a derivative, but…" description: "\"A futures contract is a derivative, but the futures exchange doesn't call them 'derivatives,' they call them 'futures.'\" — Myron Scholes" image: "https://sms4smile.com/quotes/i/9a1/myron-scholes-25844_call_a-futures-contract-is-a-derivative-but-t_493195.jpg" --- # A futures contract is a derivative, but the futures… ![“A futures contract is a derivative, but the futures exchange doesn't call them 'derivatives,' they call them 'futures.'” quote by Myron Scholes](https://sms4smile.com/quotes/i/9a1/myron-scholes-25844_call_a-futures-contract-is-a-derivative-but-t_493195.jpg) [Download](https://sms4smile.com/quotes/i/9a1/myron-scholes-25844_call_a-futures-contract-is-a-derivative-but-t_493195.jpg) [Open image](https://sms4smile.com/quotes/i/9a1/myron-scholes-25844_call_a-futures-contract-is-a-derivative-but-t_493195.jpg) > “A futures contract is a derivative, but the futures exchange doesn't call them 'derivatives,' they call them 'futures.'” [Myron Scholes](https://sms4smile.com/quotes/author/myron-scholes/) ## About This Quote This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation. Futures are a type of derivative, yet the market uses distinct terminology, creating a semantic distinction. **In simple terms:** Futures are derivatives but called differently. Key Takeaway Recognize naming conventions. Themes finance semantics derivatives Mood informative neutral Type educational financial When to use this quote - trading - risk management - education - regulation Key Concepts market terminology contract classification Questions to Reflect On - Why do markets label similar instruments differently? - Does terminology affect investor behavior? A Different Perspective The naming can obscure risk perception. ★ ★ ★ ★ ★ No ratings yet [Customer](https://sms4smile.com/quotes/about/customer/) [Derivative](https://sms4smile.com/quotes/about/derivative/) [Time](https://sms4smile.com/quotes/about/time/) ## Related quotes > [Life can be lived at a remove. You trade in futures, and then you trade in derivatives of futures. Banks make more money trading…](https://sms4smile.com/quotes/sebastian-faulks/life-can-be-lived-at-a-remove-you-trade-in-futures-and-then-you-trade/) [Sebastian Faulks](https://sms4smile.com/quotes/author/sebastian-faulks/) > [My career in academic research has not been involved with active management of securities. I've tried to understand risk-and-return relationships; also the pricing of…](https://sms4smile.com/quotes/myron-scholes/my-career-in-academic-research-has-not-been-involved-with-active/) [Myron Scholes](https://sms4smile.com/quotes/author/myron-scholes/) > [I just think TV is becoming more and more interesting in a way. Films are more and more derivative, you know, whether it's 'Transformers…](https://sms4smile.com/quotes/joe-abercrombie/i-just-think-tv-is-becoming-more-and-more-interesting-in-a-way-films/) [Joe Abercrombie](https://sms4smile.com/quotes/author/joe-abercrombie/) > [“Success is a derivative of persistence.”](https://sms4smile.com/quotes/mark-batterson/success-is-a-derivative-of-persistence/) [Mark Batterson](https://sms4smile.com/quotes/author/mark-batterson/) > [“Seeing what someone's reading is like seeing the first derivative of their thinking.”](https://sms4smile.com/quotes/ben-casnocha/seeing-what-someone-s-reading-is-like-seeing-the-first-derivative-of/) [Ben Casnocha](https://sms4smile.com/quotes/author/ben-casnocha/) > [“No doubt you’ve heard the phrase 'ignorance of the law is no excuse’, and are probably familiar with the statist meaning of that phrase:…](https://sms4smile.com/quotes/starchild/no-doubt-you-ve-heard-the-phrase-ignorance-of-the-law-is-no-excuse/) Starchild > [A lot of songs are derivative of each other. Sometimes you need to take a departure from what you do to something that's slightly…](https://sms4smile.com/quotes/tori-amos/a-lot-of-songs-are-derivative-of-each-other-sometimes-you-need-to/) [Tori Amos](https://sms4smile.com/quotes/author/tori-amos/) > [Morality is always derivative. It stems from one's worldview.](https://sms4smile.com/quotes/nancy-pearcey/morality-is-always-derivative-it-stems-from-one-s-worldview/) [Nancy Pearcey](https://sms4smile.com/quotes/author/nancy-pearcey/) > [At the same time, much of it seems to have to do with recreating things we or others had already done; it seems rather…](https://sms4smile.com/quotes/dennis-ritchie/at-the-same-time-much-of-it-seems-to-have-to-do-with-recreating/) [Dennis Ritchie](https://sms4smile.com/quotes/author/dennis-ritchie/) > [A credit derivative, at its core, is actually a very simple concept... The simplest way to think of a credit derivative is it is…](https://sms4smile.com/quotes/blythe-masters/a-credit-derivative-at-its-core-is-actually-a-very-simple-concept-the/) [Blythe Masters](https://sms4smile.com/quotes/author/blythe-masters/) > [In bitter almond oil, like in a great number of other substances that previously had been counted among the 'aromatic compounds' on behalf of…](https://sms4smile.com/quotes/otto-wallach/in-bitter-almond-oil-like-in-a-great-number-of-other-substances-that/) [Otto Wallach](https://sms4smile.com/quotes/author/otto-wallach/) > [If you're purely derivative in what you do, then you could very easily get lost along the way. But for me, I might want…](https://sms4smile.com/quotes/chrissie-hynde/if-you-re-purely-derivative-in-what-you-do-then-you-could-very-easily/) [Chrissie Hynde](https://sms4smile.com/quotes/author/chrissie-hynde/) > [“I would rather die than be derivative.”](https://sms4smile.com/quotes/e-a-carter/i-would-rather-die-than-be-derivative/) E.A. Carter > [I am attracted to anything that does not feel derivative.](https://sms4smile.com/quotes/bennett-miller/i-am-attracted-to-anything-that-does-not-feel-derivative/) [Bennett Miller](https://sms4smile.com/quotes/author/bennett-miller/) > [Everything is derivative. Everything is a remix, and we all stand on the shoulders of giants - a great phrase.](https://sms4smile.com/quotes/alexis-ohanian/everything-is-derivative-everything-is-a-remix-and-we-all-stand-on/) [Alexis Ohanian](https://sms4smile.com/quotes/author/alexis-ohanian/) ## More by Myron Scholes > [My career in academic research has not been involved with active management of securities. I've tried to understand risk-and-return relationships; also the pricing of…](https://sms4smile.com/quotes/myron-scholes/my-career-in-academic-research-has-not-been-involved-with-active/) [Myron Scholes](https://sms4smile.com/quotes/author/myron-scholes/) > [Most of the time, your risk management works. With a systemic event such as the recent shocks following the collapse of Lehman Brothers, obviously…](https://sms4smile.com/quotes/myron-scholes/most-of-the-time-your-risk-management-works-with-a-systemic-event/) [Myron Scholes](https://sms4smile.com/quotes/author/myron-scholes/) > [Building a road might create temporary jobs, but does it really create wealth if it doesn't also shorten commute times or otherwise make society…](https://sms4smile.com/quotes/myron-scholes/building-a-road-might-create-temporary-jobs-but-does-it-really-create/) [Myron Scholes](https://sms4smile.com/quotes/author/myron-scholes/) > [The experience of the '90s, whether it's the '94 peso crisis or the '97 crisis in Asia, the '98 crisis, even the 2001 crisis,…](https://sms4smile.com/quotes/myron-scholes/the-experience-of-the-90s-whether-it-s-the-94-peso-crisis-or-the-97/) [Myron Scholes](https://sms4smile.com/quotes/author/myron-scholes/) > [If someone says to you, 'Go to an old-folks' home,' that's kind of ridiculous, because a lot of old people are doing terrific things…](https://sms4smile.com/quotes/myron-scholes/if-someone-says-to-you-go-to-an-old-folks-home-that-s-kind-of/) [Myron Scholes](https://sms4smile.com/quotes/author/myron-scholes/) > [All models have faults - that doesn't mean you can't use them as tools for making decisions.](https://sms4smile.com/quotes/myron-scholes/all-models-have-faults-that-doesn-t-mean-you-can-t-use-them-as-tools/) [Myron Scholes](https://sms4smile.com/quotes/author/myron-scholes/) > [If someone says to you, Go to an old-folks home, thats kind of ridiculous, because a lot of old people are doing terrific things…](https://sms4smile.com/quotes/myron-scholes/if-someone-says-to-you-go-to-an-old-folks-home-thats-kind-of/) [Myron Scholes](https://sms4smile.com/quotes/author/myron-scholes/) > [I'm a theorist, not an institutionalist.](https://sms4smile.com/quotes/myron-scholes/i-m-a-theorist-not-an-institutionalist/) [Myron Scholes](https://sms4smile.com/quotes/author/myron-scholes/) > [I was involved with Wells Fargo Bank as a consultant in the late 1960s and early 1970s, when I suggested to them that they…](https://sms4smile.com/quotes/myron-scholes/i-was-involved-with-wells-fargo-bank-as-a-consultant-in-the-late/) [Myron Scholes](https://sms4smile.com/quotes/author/myron-scholes/) > [My first reaction on being awarded the Nobel Prize was, actually, I thought of Fischer Black, my colleague. He unfortunately had passed away. And…](https://sms4smile.com/quotes/myron-scholes/my-first-reaction-on-being-awarded-the-nobel-prize-was-actually-i/) [Myron Scholes](https://sms4smile.com/quotes/author/myron-scholes/) > [I think in our global economy, uncertainty is ever increasing. So to accommodate to that, we need to build a dynamic economy and dynamic…](https://sms4smile.com/quotes/myron-scholes/i-think-in-our-global-economy-uncertainty-is-ever-increasing-so-to/) [Myron Scholes](https://sms4smile.com/quotes/author/myron-scholes/) > [From an early age I was very, very fascinated by uncertainty.](https://sms4smile.com/quotes/myron-scholes/from-an-early-age-i-was-very-very-fascinated-by-uncertainty/) [Myron Scholes](https://sms4smile.com/quotes/author/myron-scholes/) > [Innovation must lead infrastructure for a simple but compelling reason: Innovation produces new types of products and markets, and it is virtually impossible to…](https://sms4smile.com/quotes/myron-scholes/innovation-must-lead-infrastructure-for-a-simple-but-compelling/) [Myron Scholes](https://sms4smile.com/quotes/author/myron-scholes/) > [All models have faults - that doesnt mean you cant use them as tools for making decisions.](https://sms4smile.com/quotes/myron-scholes/all-models-have-faults-that-doesnt-mean-you-cant-use-them-as-tools/) [Myron Scholes](https://sms4smile.com/quotes/author/myron-scholes/) > [Keynesian modelling relies on marginal propensity to consume and marginal propensity to invest. The idea that if we give more money to the poor,…](https://sms4smile.com/quotes/myron-scholes/keynesian-modelling-relies-on-marginal-propensity-to-consume-and/) [Myron Scholes](https://sms4smile.com/quotes/author/myron-scholes/) [Explore all 22 Myron Scholes quotes ](https://sms4smile.com/quotes/author/myron-scholes/) ## More Call quotes > [Some would call me an environmentalist. I don't know why. I reuse the water that falls in my backyard in the winter. I reuse…](https://sms4smile.com/quotes/ed-begley-jr/some-would-call-me-an-environmentalist-i-don-t-know-why-i-reuse-the/) [Ed Begley, Jr](https://sms4smile.com/quotes/author/ed-begley-jr/) > [I call myself an educator.](https://sms4smile.com/quotes/eliyahu-goldratt/i-call-myself-an-educator/) [Eliyahu Goldratt](https://sms4smile.com/quotes/author/eliyahu-goldratt/) > [I would call myself a Gnostic. Which means, I'm interested in pursuing and understanding the spiritual nature of things. A Gnostic is somebody seeking…](https://sms4smile.com/quotes/robert-crumb/i-would-call-myself-a-gnostic-which-means-i-m-interested-in-pursuing/) [Robert Crumb](https://sms4smile.com/quotes/author/robert-crumb/) > [Most of black America is in housing projects, without jobs, living on welfare. And this is not the case in 'The Cosby Show,' because…](https://sms4smile.com/quotes/august-wilson/most-of-black-america-is-in-housing-projects-without-jobs-living-on/) [August Wilson](https://sms4smile.com/quotes/author/august-wilson/) > [We only call at ducks when their rear ends are towards us. If I'm looking at you and you call my name, then I…](https://sms4smile.com/quotes/jase-robertson/we-only-call-at-ducks-when-their-rear-ends-are-towards-us-if-i-m/) [Jase Robertson](https://sms4smile.com/quotes/author/jase-robertson/) > [As someone who came to New York in the 1970s, I was, like so many of my friends, a certified member of what we…](https://sms4smile.com/quotes/graydon-carter/as-someone-who-came-to-new-york-in-the-1970s-i-was-like-so-many-of-my/) [Graydon Carter](https://sms4smile.com/quotes/author/graydon-carter/) > [Most people I know are not hard-core religious people. They are what I would call 'lightly religious.' So I don't buy the notion that…](https://sms4smile.com/quotes/trey-parker/most-people-i-know-are-not-hard-core-religious-people-they-are-what-i/) [Trey Parker](https://sms4smile.com/quotes/author/trey-parker/) > [Obama did organize a great large number of people and many enthusiastic people, what's called in the press 'Obama's Army.' But the army is…](https://sms4smile.com/quotes/noam-chomsky/obama-did-organize-a-great-large-number-of-people-and-many/) [Noam Chomsky](https://sms4smile.com/quotes/author/noam-chomsky/) > [It's always a wake-up call to get beaten.](https://sms4smile.com/quotes/usain-bolt/it-s-always-a-wake-up-call-to-get-beaten/) [Usain Bolt](https://sms4smile.com/quotes/author/usain-bolt/) > [You've got Washington picking winners and losers. And so, all of a sudden, decisions are being made on what helps politicians, not what helps…](https://sms4smile.com/quotes/jeb-hensarling/you-ve-got-washington-picking-winners-and-losers-and-so-all-of-a/) [Jeb Hensarling](https://sms4smile.com/quotes/author/jeb-hensarling/) > [If LFC call, you have to listen and think about it.](https://sms4smile.com/quotes/timo-werner/if-lfc-call-you-have-to-listen-and-think-about-it/) [Timo Werner](https://sms4smile.com/quotes/author/timo-werner/) > [It's silly to call me the new Ed Sheeran. He can fill stadiums as a solo artist, but I'm not like that.](https://sms4smile.com/quotes/james-bay/it-s-silly-to-call-me-the-new-ed-sheeran-he-can-fill-stadiums-as-a/) [James Bay](https://sms4smile.com/quotes/author/james-bay/) > [I'm doing what all modern artists do now, which is nothing - just sit around and dream about things. I'll do what they call…](https://sms4smile.com/quotes/billy-al-bengston/i-m-doing-what-all-modern-artists-do-now-which-is-nothing-just-sit/) [Billy Al Bengston](https://sms4smile.com/quotes/author/billy-al-bengston/) > [It's funny how you call me a celebrity. Oh man.](https://sms4smile.com/quotes/steven-hill/it-s-funny-how-you-call-me-a-celebrity-oh-man/) [Steven Hill](https://sms4smile.com/quotes/author/steven-hill/) > [There is no secret to success except hard work and getting something indefinable which we call 'the breaks.' In order for a writer to…](https://sms4smile.com/quotes/countee-cullen/there-is-no-secret-to-success-except-hard-work-and-getting-something/) [Countee Cullen](https://sms4smile.com/quotes/author/countee-cullen/) Browse all 1,525 Call quotes ```json { "@context": "https://schema.org", "@graph": [ { "@type": "Quotation", "text": "A futures contract is a derivative, but the futures exchange doesn't call them 'derivatives,' they call them 'futures.'", "creator": { "@type": "Person", "name": "Myron Scholes" }, "isPartOf": { "@id": "https://sms4smile.com/quotes/#website" }, "url": "https://sms4smile.com/quotes/myron-scholes/a-futures-contract-is-a-derivative-but-the-futures-exchange-doesn-t/", "about": { "@type": "Thing", "name": "Call" }, "@id": "https://sms4smile.com/quotes/myron-scholes/a-futures-contract-is-a-derivative-but-the-futures-exchange-doesn-t/#quotation", "image": { "@type": "ImageObject", "@id": "https://sms4smile.com/quotes/i/9a1/myron-scholes-25844_call_a-futures-contract-is-a-derivative-but-t_493195.jpg", "contentUrl": "https://sms4smile.com/quotes/i/9a1/myron-scholes-25844_call_a-futures-contract-is-a-derivative-but-t_493195.jpg", "url": "https://sms4smile.com/quotes/i/9a1/myron-scholes-25844_call_a-futures-contract-is-a-derivative-but-t_493195.jpg", "width": 1080, "height": 1080, "caption": "“A futures contract is a derivative, but the futures exchange doesn't call them 'derivatives,' they call them…” — Myron Scholes", "creditText": "SMS4Smile Quotes", "creator": { "@id": "https://sms4smile.com/quotes/#organization" } } }, { "@type": "BreadcrumbList", "itemListElement": [ { "@type": "ListItem", "position": 1, "name": "Home", "item": "https://sms4smile.com/" }, { "@type": "ListItem", "position": 2, "name": "Quotes", "item": "https://sms4smile.com/quotes/" }, { "@type": "ListItem", "position": 3, "name": "Myron Scholes", "item": "https://sms4smile.com/quotes/author/myron-scholes/" }, { "@type": "ListItem", "position": 4, "name": "A futures contract is a derivative,...", "item": "https://sms4smile.com/quotes/myron-scholes/a-futures-contract-is-a-derivative-but-the-futures-exchange-doesn-t/" } ], "@id": "https://sms4smile.com/quotes/myron-scholes/a-futures-contract-is-a-derivative-but-the-futures-exchange-doesn-t/#breadcrumb" }, { "@type": "WebSite", "@id": "https://sms4smile.com/quotes/#website", "name": "SMS4Smile Quotes", "url": "https://sms4smile.com/quotes/", "publisher": { "@id": "https://sms4smile.com/quotes/#organization" } }, { "@type": "Organization", "@id": "https://sms4smile.com/quotes/#organization", "name": "SMS4Smile Quotes", "url": "https://sms4smile.com/quotes/", "logo": { "@type": "ImageObject", "url": "https://sms4smile.com/quotes/wp-content/themes/sq/assets/icons/icon-512.png", "width": 512, "height": 512 } } ] } ```