A derivative that is listed on a regulated exchange (whether specialized- i.e., for a given derivative, or general), which has in place its own listing requirements, underlying asset features and specifications, trading rules, etc. A listed derivative (also, exchange-traded derivative) derives its value from an underlying asset that is also listed on an exchange. Examples include listed options (exchange-traded options) and listed futures (exchange-traded futures).

Listed derivatives are typically associated with a high degree of risks, but at the same time specific types of risk are perceived to be eliminated (especially, counterparty risk). The key risks include credit risk and market risk. Credit risk involves the ability of the relevant issuer and guarantor (if any) to satisfy their respective obligations on the date these obligations fall due. Market risk relates to the returns of the derivatives that are determined and driven by the performance of the underlying asset. Positive returns in the past do not guarantee positive returns in the future. An investor could entirely lose his/ her invested amount if the derivatives end up out-of-the-money at expiration (if not exercised for profit over the lifespan of the derivative).