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What does "financial derivatives" mean?
Hello, financial derivatives, also known as financial derivatives, are concepts corresponding to basic financial products, which refer to derivative financial products based on basic products or basic variables, and their prices depend on the price (or value) changes of basic financial products. The basic product mentioned here is a relative concept, including not only spot financial products (such as bonds, stocks, bank time deposits, etc.). ), including financial derivatives. There are many basic products or variables of financial derivatives, including asset price, price index, interest rate, exchange rate, rate, inflation rate and credit rating. In recent years, some natural phenomena (such as temperature and snowfall) and social phenomena (such as election results and greenhouse gas emissions) have gradually become the basic variables of financial derivatives.