(1) zero-sum game. That is, the profit and loss of both parties to a contract transaction (which is uncertain due to the possibility of standardized contract transactions) are completely negatively correlated, and the net profit and loss is zero, so it is called zero sum. (2) High leverage. Derivatives trading adopts the margin system. That is, the minimum capital required for trading only needs to meet a certain proportion of the value of the underlying assets. Margin can be divided into initial margin. Maintain the maintenance margin, and adopt the market value system when trading on the exchange. If the margin ratio during the transaction is lower than the maintenance margin ratio, you will receive a notice of margin recovery. If the investor fails to add the margin in time, he will be forced to close his position. It can be seen that derivatives trading has the characteristics of high risk and high income.

The function of financial derivatives is to avoid risks. Price discovery is a good way to hedge asset risks. However, everything has its good side and bad side. If the risk is avoided, someone must bear it. The high leverage of derivatives is to transfer huge risks to those who are willing to bear them. Such traders are called speculators, while risk-averse traders are called hedgers, and another kind of traders are called hedgers.

Improper trading of financial derivatives will lead to huge risks, some of which are even catastrophic. There are Bahrain Bank Incident, Procter & Gamble Incident, LTCM Incident, Trust Bank Incident, China Copper Reserve Incident and China Aviation Oil Incident abroad.