Financial derivatives refer to contracts whose value depends on changes in the value of the underlying asset (Underlying Asset). The most unique feature of financial derivatives is margin trading, that is, as long as a certain proportion of margin is paid, full transactions can be carried out without actual transfer of principal. The settlement of the contract is generally carried out by cash difference settlement. Only Only contracts that are performed by physical delivery on the maturity date require the buyer to pay the full amount of the loan. Therefore, financial derivatives transactions have a leverage effect. The lower the margin, the greater the leverage effect and the greater the risk.

Based on product form.

It can be divided into four categories: forwards, futures, options and swaps.