Primary Instrument

Primary Instrument This is similar to a financial instrument, except for its value does not come from another instrument, but rather directly from the market. For example, a cash instrument is a primary instrument, since it is able to be transferred at all times. In addition, things like monetary loans are primary instruments because a transfer and its terms have already been agreed on. This is the opposite of a derivative instrument, as these are controlled by the value of other assets, rather than themselves. The value of cash is not dependent on anything but itself, so it is a primary instrument.