Derivative financial assets are also called financial derivatives, that is, "financial derivatives". They are a concept corresponding to basic financial products. They are based on basic products or basic variables, and their prices vary with the basic products. Derived financial products that are derived from changes in the price (or value) of financial products. 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 and even weather (temperature) indexes.

Derivatives of financial assets are the product of financial innovation, which means creating financial instruments to help managers of financial institutions better control risks. Such tools are called financial derivatives. At present, the most important financial derivatives include: forward contracts, financial futures, options and swaps, etc. Common derivatives (1) Futures contracts. Futures contracts refer to standardized contracts formulated by futures exchanges that stipulate the delivery of a certain quantity and quality of physical commodities or financial commodities at a specific time and place in the future.

(2) Options contract. An option contract refers to an option contract that can be obtained by the buyer of the contract after paying a certain amount of money. Currently, the warrants launched in our securities market are call options, while the put warrants are put options.

(3) Forward contract. A forward contract refers to a contract in which the two parties agree that the buyer will purchase a certain quantity of the subject item from the seller at an agreed value on a certain date in the future.

(4) Swap contract. A swap contract refers to a contract in which the two parties exchange a series of cash flows within a certain period in the future. Depending on the subject matter of the contract, swaps can be divided into interest rate swaps, currency swaps, commodity swaps, equity swaps, etc.

Among them, interest rate swaps and currency swaps are more common