A derivative contract that is not traded in active markets. Examples of unlisted derivatives include forward contracts, unlisted swaps, unlisted options, etc. These contracts are customized, bilateral agreements that are used to transfer risk from one party to the other. They are negotiated privately between the two parties involved and then booked directly with each other without resorting to organized exchanges- a centralized trading venue.

Unlisted derivatives are also known as OTC derivatives or privately negotiated derivatives.