# Relationship between differentials and derivatives trading

### Difference Between Differential and Derivative | Difference Between | Differential vs Derivative

To better understand the difference between the differential and derivative of a function, you need to understand the concept of a function first. Given the graph of a function, Sal sketches the graph of its antiderivative. In other words, he. Get comfortable with the big idea of differential calculus, the derivative. The derivative of a Secant line with arbitrary difference (with simplification). (Opens a.

The concept of derivative of a function is one of the most powerful concepts in mathematics. The derivative of a function is usually a new function which is called as the derivative function or the rate function. The derivative of a function represents an instantaneous rate of change in the value of a dependent variable with respect to the change in value of the independent variable.

It measures how steep the graph of a function is at some given point on the graph. In simple terms, derivative is the rate at which function changes at some particular point. Derivative Both the terms differential and derivative are intimately connected to each other in terms of interrelationship. In mathematics changing entities are called variables and the rate of change of one variable with respect to another is called as a derivative.

Equations which define relationship between these variables and their derivatives are called differential equations. Differentiation is the process of finding a derivative. The derivative of a function is the rate of change of the output value with respect to its input value, whereas differential is the actual change of function. Relationship of Differential Vs. Derivative Differentiation is a method of computing a derivative which is the rate of change of the output y of the function with respect to the change of the variable x.

Derivative of the function f x is defined as the function whose value generates the slope of f x where it is defined and f x is differentiable. It refers to the slope of the graph at a given point.

Representation of Differential Vs. Derivative Differentials are represented as dx, dy, dt, and so on, where dx represents a small change in x, dy represents a small change in y, and dt is a small change in t. When comparing changes in related quantities where y is the function of x, the differential dy can be written as: For example, the derivative of sin x can be written as: Comparison Chart Summary of Differential Vs.

Derivative In mathematics, the rate of change of one variable with respect to another variable is called a derivative and the equations which express relationship between these variables and their derivatives are called differential equations. In a nutshell, differentia equations involve derivatives which in fact specify how a quantity changes with respect to another.

It's going to look something like that. So let's try a bit of an experiment. And I know how this experiment turns out, so it won't be too much of a risk. Let me draw better than that. So that is my y-axis, and that's my x-axis. Let's call this, we can call this y, or we can call this the f of x axis.

And let me draw my curve again.

### Derivatives: how to find derivatives | Calculus | Khan Academy

And I'll just draw it in the positive coordinate, like that. And what if I want to find the slope right there? What can I do? Well, based on our definition of a slope, we need 2 points to find a slope, right? Here, I don't know how to find the slope with 1 point. So let's just call this point right here, that's going to be x. We're going to be general. This is going to be our point x. But to find our slope, according to our traditional algebra 1 definition of a slope, we need 2 points. So let's get another point in here.

Let's just take a slightly larger version of this x. So let's say, we want to take, actually, let's do it even further out, just because it's going to get messy otherwise. So let's say we have this point right here. And the difference, it's just h bigger than x. Or actually, instead of saying h bigger, let's just, well let me just say h bigger. So this is x plus h. That's what that point is right there. So what going to be their corresponding y-coordinates on the curve? Well, this is the curve of y is equal to f of x.

**Applications of Partial Derivatives - Magic Marks**

So this point right here is going to be f of our particular x right here. And maybe to show you that I'm taking a particular x, maybe I'll do a little 0 here. This is x naught, this is x naught plus h. This is f of x naught. And then what is this going to be up here, this point up here, that point up here? Its y-coordinate is going to be f of f of this x-coordinate, which I shifted over a little bit. So what is a slope going to be between these two points that are relatively close to each other?

Remember, this isn't going to be the slope just at this point. This is the slope of the line between these two points. And if I were to actually draw it out, it would actually be a secant line between, to the curve. So it would intersect the curve twice, once at this point, once at this point.

You can't see it. If I blew it up a little bit, it would look something like this. This is our coordinate x naught f of x naught, and up here is our coordinate for this point, which would be, the x-coordinate would be x naught plus h, and the y-coordinate would be f of x naught plus h.

Just whatever this function is, we're evaluating it at this x-coordinate That's all it is. So these are the 2 points. So maybe a good start is to just say, hey, what is the slope of this secant line? And just like we did in the previous example, you find the change in y, and you divide that by your change in x. Let me draw it here.

Your change in y would be that right here, change in y, and then your change in x would be that right there. So what is the slope going to be of the secant line? The slope is going to be equal to, let's start with this point up here, just because it seems to be larger.

So we want a change in y. I just evaluated this guy up here. Looks like a fancy term, but all it means is, look. The slightly larger x evaluate its y-coordinate.

### Marginal cost & differential calculus (video) | Khan Academy

Where the curve is at that value of x. So that is going to be, so the change in y is going to be a f of x naught plus h. That's just the y-coordinate up here. Minus this y-coordinate over here. So minus f of x naught. So that equals our change in y. And you want to divide that by your change in x.

So what is this? This is the larger x-value. We started with this coordinate, so we start with its x-coordinate.

## Formal definition of the derivative as a limit

So it's x naught plus h, x naught plus h. Well, we just picked a general number. So that is over your change in x. So this is the slope of the secant line. We still haven't answered what the slope is right at that point, but maybe this will help us get there. If we simplify this, so let me write it down like this.

The slope of the secant, let me write that properly. The slope of the secant line is equal to the value of the function at this point, f of x naught plus h, minus the value of the function here, mine f of x naught.

So that just tells us the change in y. It's the exact same definition of slope we've always used. Over the change in x.

And we can simplify this. We have x naught plus h minus x naught. So x naught minus x naught cancel out, so you have that over h. So this is equal to our change in y over change in x. But I started off saying, I want to find the slope of the line at that point, at this point, right here. This is the zoomed-out version of it. So what can I do? Well, I defined second point here as just the first point plus some h. And we have something in our toolkit called a limit. This h is just a general number.

It could be 10, it could be 2, it could be 0. It could be an arbitrarily small number. So what happens, what would happen, at least theoretically, if I were take the limit as h approaches 0? So, you know, first, maybe h is this fairly large number over here, and then if I take h a little bit smaller, then I'd be finding the slope of this secant line. If I took h to be even a little bit smaller, I'd be finding the slope of that secant line. If h is a little bit smaller, I'd be finding the slope of that line.

So as h approaches 0, I'll be getting closer and closer to finding the slope of the line right at my point in question. Obviously, if h is a large number, my secant line is going to be way off from the slope at exactly that point right there. So what happens if I take the limit as h approaches zero of this?

So the limit as h approaches 0 of my secant slope. Of, let me switch to green. And now just to clarify something, and sometimes you'll see it in different calculus books, sometimes instead of an h, they'll write a delta x here. Where this second point would have been defined as x naught plus delta x, and then, this would have simplified to just delta x over there, and we'd be taking the limit as delta x approaches 0.

The exact same thing. We're taking h as the difference between one x point and then the higher x point, and then we're just going to take the limit as that approaches zero. We could have called that delta x just as easily. But I'm going to call this thing, which equals the slope of the tangent line, and it does equal the slope of the tangent line, I'm going to call this the derivative of f.

Let me write that down. And I'm going to say that this is equal to f prime of x. And this is going to be another function.