Four basic types of foreign exchange derivatives. Foreign exchange transaction: the two parties who sign the exchange contract agree to exchange assets regularly within a certain period of time.

2. Trading of foreign exchange options: The option contract may allow the contract holder to buy/sell at the price determined today in the future, which is a right, not an obligation.

3. forex futures trading: The buyer or seller of a futures contract submits a deposit at the beginning of the transaction as a buffer mechanism after the price changes. The deposit shall be adjusted periodically according to the changes in the contract price.

4. Foreign exchange forward transaction: similar to futures, but without margin system, it is a non-standardized forward agreement.