I. Definition
Derivative, a Chinese word, means derivative interest; Atoms or groups in simple compounds are replaced by other atoms or groups to form more complex compounds.
Second, the citation interpretation
1. Derived interest.
Yang Mo's diary is not a diary. Beautiful Xizi Lake: "This is a precious heritage for the Chinese nation to thrive!"
Atoms or groups in relatively simple compounds are replaced by other atoms or groups, resulting in more complex compounds.
Extended content:
1. What are financial derivatives?
A derivative product is a contract between two or more parties, and its value is based on the agreed basic financial assets (such as securities) or a group of assets (such as indexes). Common basic tools include bonds, commodities, currencies, interest rates, market indexes and stocks.
2. Understand financial derivatives
Derivatives are secondary securities, and their value is completely based on (derived from) the value of the primary securities related to them-called basic securities. Usually, derivatives are regarded as advanced investments.
There are two kinds of derivative products: "lock" and "option". Lock-in products (such as swaps, futures or forwards) bind the terms agreed by both parties within the validity period of the contract from the beginning.
On the other hand, option products (such as stock options) provide the holder with the right to buy or sell the underlying assets or securities at a specific price on or before the option expiration date, but have no obligation. Although the value of derivatives is based on assets, the ownership of derivatives does not mean the ownership of assets. Futures contracts, forward contracts, options, swaps and warrants are commonly used derivatives.
3. Futures contracts
A futures contract is a derivative because its value is influenced by the performance of the underlying assets. A futures contract is a contract to buy or sell commodities or securities at a predetermined price on a predetermined date in the future. Futures contracts are standardized according to specific quantities and expiration dates. Futures contracts can be used for commodities such as oil and wheat and precious metals such as gold and silver.