Different financial instruments can meet the different financial needs of market participants because of their different repayment terms, liquidity, safety and yield.

Through the innovation of financial instruments, financial market participants can have more choices to form their own asset portfolio, which greatly enhances their opportunities and means to avoid risks and gain profits, thus attracting more investors to join the financial market and continuously expanding the scale of the financial market.

Related definitions:

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

In the qualitative and classification of assets, they belong to financial assets, so they are called financial assets; They are legal documents that can prove the relationship between property rights and creditor's rights and debts, so they are called marketable securities. Most financial instruments or products, assets and securities have different degrees of risk.