1. The concept of financial derivatives
Also known as financial derivatives, it is a concept corresponding to basic financial products . It refers to derivative financial products based on basic products or basic variables, whose prices depend on changes in the price (or value) of basic financial products .
2. Basic characteristics of financial derivatives
intertemporality
Leverage
Linkage
uncertainty or high risk
3. Classification of financial derivatives
(1) Classification by product form
stand-alone derivatives
Forward contracts, futures contracts, swap contracts and options contracts, etc.
embedded derivatives
Such as convertible corporate bonds, redemption clauses, resale clauses, etc. contained in corporate bond terms
(2) Classification according to the trading methods and characteristics of financial derivatives
financial forward contract
financial futures
financial options
financial swap
Structured financial derivatives
(3) Classification according to basic tool types
Equity product derivatives
Including stock futures, stock options, stock index futures, stock index options, etc.
currency derivatives
Including forward foreign exchange contracts , currency futures, currency options, currency swaps and mixed trading contracts of the above contracts
interest rate derivatives
Including forward interest rate agreements , interest rate futures, interest rate options, interest rate swaps and mixed trading contracts of the above contracts
credit derivatives
Other derivatives
(4) Classification according to trading venues
Exchange Traded Derivatives
Derivatives traded in the over-the-counter market ( OTC )