Derivative financial assets are also called financial derivatives, and financial derivatives are also called "financial derivatives".

This is a concept corresponding to basic financial products, which refers to derivative financial products based on basic products or basic variables, whose prices change with the price (or value) of the basic financial product.

The basic products mentioned here are a relative concept, including not only spot financial products (such as bonds, stocks, bank time deposit certificates, etc.), but also financial derivatives. Variables that are the basis of financial derivatives include interest rates, exchange rates, various price indexes, inflation rates and even weather (temperature) indexes.

Financial derivatives are financial instruments that are derived and derived from traditional financial instruments such as currencies, bonds, and stocks, and are characterized by leverage and credit transactions.

Extended information

Hedge funds are a new type of derivative financial instruments, that is, hedge funds can use a variety of investment strategies, including the use of various derivatives such as index futures and stock options. , forward foreign exchange contracts, and even other financial instruments with financial leverage effects for investment.

At the same time, you can also invest in stock markets, bond markets, foreign exchange markets, and commodity markets in various places. Compared with commodity futures funds and securities funds with a specific market range or instrument range, hedge funds have a wider scope of operations.

Reference materials: Baidu Encyclopedia - Derivative financial assets

Reference materials: China.com - New financial derivatives: hedge funds