(1) intertemporal.

Financial derivatives are contracts that both parties agree to trade or choose whether to trade at a certain time in the future by predicting the changing trend of interest rates, exchange rates, stock prices and other factors. The characteristics of intertemporal trading are very prominent.

(2) lever.

In the transaction of financial derivatives, it is generally only necessary to sign long-term large-value contracts or exchange different financial instruments with a small amount of margin or royalties.

(3) linkage.

The value of financial derivatives is closely related to the basic products or variables, and the rules change. Usually, the payment characteristics of financial derivatives associated with basic variables are stipulated in derivatives contracts, and their linkage relationship can be simple linear relationship, nonlinear function or piecewise function.

(4) High risk.

The trading consequences of financial derivatives depend on the accuracy of traders' prediction and judgment on the future price (value) of basic tools (variables). The volatility of the price of basic instruments determines the instability of the profit and loss of financial derivatives trading.

Two, the most common derivative financial instruments mainly include forward, futures, options and swaps.

1, forward.

A forward contract is a contract in which one trader buys and sells an underlying asset from another trader at an agreed price at a certain time in the future. The difference between a forward contract and a spot contract is that the transaction agreed in the spot contract will be executed immediately, while the transaction agreed in the forward contract will occur at the agreed future time.

2. Futures.

A futures contract is essentially similar to a forward contract, in which both parties agree to buy and sell an asset at a predetermined price at some future time. Unlike forward contracts, futures contracts are not traded in the OTC market, but in the exchange market. Futures contracts are standardized contracts.

3. options.

Option contracts are essentially different from forward and futures. The direct consideration of both parties in option contracts is the right to buy or sell assets at the agreed future time and at the agreed price. There are two types: call option and put option.

4. Swap.

Swap agreement is an agreement that both parties agree to exchange cash flows many times in the future. In the agreement, both parties must agree in advance on the time when the cash flow exchange takes place and the calculation method of cash flow. Swap agreement is a derivative that is traded in the OTC market.

Extended data:

1. Financial derivatives refer to financial contracts whose value depends on one or more basic assets or indexes. The basic types of contracts include forward, futures, swaps and options.

2. Financial derivatives also include mixed financial instruments with one or more characteristics of forward, futures, swaps and options. Financial derivatives are financial-related derivatives, which usually refer to financial instruments derived from primary assets.

3. Its * * * feature is margin trading, that is, as long as a certain percentage of margin is paid, the full amount can be traded without actual principal transfer. Contracts are generally settled by cash price difference, and only contracts that are performed by physical delivery on the due date require the buyer to pay all the loans. Therefore, financial derivatives trading has leverage effect. The lower the margin, the greater the leverage effect and the greater the risk.

References:

Derivative Financial Assets Baidu Encyclopedia