In finance, an equity derivative is a class of derivatives whose value is at least partly derived They can be used for hedging against an existing equity position , or speculating on future movements of the index. established institutional investors), as the basket definition is not standardized in the way that an equity index is. a position described in paragraph (1) of this definition ; and (3) A correlation trading Any equity position that is not publicly traded, other than a derivative that. Equity is the value of an asset less the value of all liabilities on that asset. But in general, each meaning refers to ownership in an asset. The equity of an.