1. Different classifications

Financial products can be divided into two categories: basic securities such as stocks and bonds, and derivative (senior) securities such as futures and options.

Financial instruments are divided into two categories: cash and derivatives. Cash is divided into securities and other cash (such as loans, deposits). Derivatives are divided into exchange-traded financial derivatives and over-the-counter financial derivatives. In addition, it can also be divided into debt type and ownership type according to the type of property.

2. Different functions

Financial instruments such as stocks, futures, gold, foreign exchange, insurance policies, etc. are also called financial products, financial assets, and securities. Because they are products that can be bought and sold in the financial market, they are called financial products; because they have different functions and can achieve different purposes, such as financing, hedging, etc., they are called financial instruments;

Assets In terms of characterization and classification, they are financial assets, so they are called financial assets; they are legal documents that can prove property rights and creditor-debt relationships, so they are called securities. Most financial instruments or products, assets and securities carry varying degrees of risk.

3. Different contents

Financial instruments are the objects of financial market transactions. They are produced and developed with the development of credit relationships. Modern complicated financial financing relationships cannot be handled by verbal agreements. Talking without proof can easily lead to disputes, and it will not allow creditor's rights or ownership rights to be transferred or circulated in the market. In order to meet the needs of various forms of credit, financial instruments such as commercial papers, bank deposit certificates, stocks, and bonds have been produced.

Financial development proceeds step by step, so financial products can be divided into two categories: basic securities such as stocks and bonds, and derivative securities such as futures and options. Secondly, according to ownership attributes , financial products can be divided into two categories: property rights products such as stocks, options, warrants, etc., and debt products such as treasury bills and bank credit products.