The derivative measures how fast a function is changing at a single point. Geometrically, it is the slope of the line that just touches the curve there: the tangent.
From secants to the tangent
Pick a point on the curve and a second point a small distance away. The straight line through the two, the secant, has slope
the change in height over the change in width. This is an average rate of change over the little interval. Now let the second point slide toward the first, shrinking toward zero. The secant pivots until it rests against the curve as the tangent, and its slope becomes the instantaneous rate of change.

The definition
The derivative of at is that limiting slope:
when the limit exists. The quotient inside is in the limit, which is precisely why we needed limits first.
A worked example
Take . Then
As this approaches , so . At the curve climbs with slope .
Notation
Newton wrote ; Leibniz wrote , read "the derivative of with respect to ." Both say the same thing: the rate at which the output changes as the input nudges. A function that has a derivative everywhere is called differentiable, and differentiability is a stronger, smoother condition than mere continuity.