There are many kinds of financial derivatives in the world, and active financial innovation constantly introduces new financial derivatives. Its classification mainly includes the following categories: 1. According to the product form, it can be divided into forward, futures, options and swaps; 2. According to the original assets, it can be divided into stocks, interest rates, exchange rates and commodities; 3. According to the transaction method, it can be divided into on-site transaction and off-site transaction.

Just as a coin has two sides, everything has two sides. If the advantages outweigh the disadvantages, that is good; If the disadvantages outweigh the advantages, it is a bad thing. When we look at a thing, we should divide it into two parts. We should not only see the good side, but also ignore the bad side. Financial derivatives have both good and bad sides. Generally speaking, the benefits of financial derivatives are obvious and can promote the prosperity and development of financial markets, but this is not the case.

The function of financial derivatives is to avoid risks, and price discovery is a good way to hedge asset risks. Since 1980s, the establishment and development of financial derivatives market is the most remarkable feature of international financial market. Judging from the global development trend of financial derivatives, the trading volume of financial derivatives has far exceeded that of physical derivatives.

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. Some studies show that uncontrolled financial derivatives trading is the most direct cause of AIG and Lehman Brothers events. The characteristics of financial derivatives are market risk, credit risk, liquidity risk, operational risk and legal risk, and financial derivatives are risky.