OTC 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. Financial derivatives also include mixed financial instruments with one or more characteristics of forward, futures, swaps and options.

OTC financial derivatives are financial-related derivatives, which usually refer to financial instruments derived from primary assets. Its * * * is characterized by margin trading, that is, as long as a certain percentage of margin is paid, the full amount can be traded without actual principal transfer, and the contract is generally settled by cash difference. Only contracts 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.