Financial derivatives are actually a kind of contract. It is not a concrete physical product, but a contract in which the value of a financial product depends on the change of the subject matter value of an asset. It is a general term for many financial products, such as futures, options, stocks and bonds. Everybody follow me.

Overview of derivative products

Derivation, from the literary point of view, is a process of evolution and reproduction. Financial derivative product is a kind of financial-related contract, a new product derived from the original financial product, and can also be regarded as a financial tool for people to trade. With the continuous refinement of social division of labor, various trading tools appear and update constantly, giving the market more functions, which is also the product of economic progress. Derivatives can be roughly divided into four types: options, futures, forwards and swaps. They all restrict the behavior of buyers and sellers in the form of contracts. There are two trading methods, one is on-site trading and the other is off-site trading. On-floor trading refers to futures exchanges, which are restricted by exchange rules. As a third party, the exchange will charge a certain fee.