Financial derivatives usually refer to financial instruments derived from primary assets. The same characteristic of financial derivatives is margin trading, that is, as long as a certain proportion of margin is paid, the full amount can be traded without actually transferring the principal, and the settlement of contracts is generally carried out in the form of cash spread settlement. Only contracts performed by physical delivery on the due date require the buyer to pay the full amount.

Therefore, financial derivatives trading has leverage effect. The lower the margin, the greater the leverage effect and the greater the risk. Two types of financial derivatives are forward contracts and option contracts. Financial innovation activities continue to introduce new derivatives, and there are many kinds of financial derivatives in the world. The following table shows the common types of financial derivatives.