Financial derivatives are mainly divided into the following categories.
(1) According to the product form. It can be divided into four categories: forward, futures, options and swaps.
Forward contracts and futures contracts are both forms of transactions in which both parties agree to buy and sell a certain amount and quality of assets at a certain price at a certain time in the future. Futures contracts are standardized contracts formulated by futures exchanges, which stipulate the expiration date of contracts and the types, quantity and quality of assets to be bought and sold. Forward contracts are contracts signed by buyers and sellers according to their special needs. Therefore, the liquidity of futures trading is high and the liquidity of forward trading is low.
A swap contract is a contract signed by both parties to exchange certain assets in a certain period in the future. More precisely, a swap contract refers to a contract signed by both parties to exchange cash flows that they think are of equal economic value in a certain period in the future. Interest rate swap contracts and currency swap contracts are more common. If the swap currency specified in the swap contract is the same currency, it is an interest rate swap; If it is a foreign currency, it is a currency swap.
Option trading is the trading of buying and selling rights. Option contracts stipulate the right to buy and sell a certain kind, quantity and quality of primary assets at a certain time and at a certain price. Option contracts include standardized contracts listed on exchanges and non-standardized contracts traded over the counter.
(2) According to the primary assets, it can be roughly divided into four categories, namely, stocks, interest rates, exchange rates and commodities. If subdivided, the stock category includes the stock index formed by specific stocks and stock combinations; Interest rates can be divided into short-term interest rates represented by short-term deposit rates and long-term interest rates represented by long-term bond rates; Currency category includes the ratio between different currencies: commodity category includes all kinds of physical commodities.
As a derivative product, commodity futures have a history of 10 years in China, and there are many kinds, mainly agricultural and sideline products, energy products, metal products and so on. In recent years, China's commodity futures have developed vigorously. In 2006, Dalian Commodity Exchange ranked ninth, Shanghai Futures Exchange ranked 16 and Zhengzhou Commodity Exchange ranked 18. Compared with the development of commodity futures, the development of financial derivatives in China is still seriously insufficient and the foundation is relatively weak. "Although interbank financial derivatives trading began in 2000, the accumulated amount has exceeded10.5 trillion US dollars. However, taking RMB derivative transactions as an example, the total amount of existing RMB foreign exchange swaps is only 24 billion yuan, and the principal balance of interest rate swaps is only11700 million. "