Financial derivatives refer to financial contracts based on basic financial instruments, whose value depends on one or more basic assets or indexes, mainly mixed financial instruments with one or more characteristics of forward, futures, swaps and options.

Financial derivatives are both standardized and non-standardized. Standardized contracts refer to contracts that have standardized provisions on the transaction price, transaction time, asset characteristics and transaction methods of the subject matter, and are generally listed and traded on exchanges, such as futures; Non-standardized contracts refer to the above-mentioned projects agreed by both parties, so they are flexible, such as long-term agreements. The same feature of financial derivatives and tier-one assets is margin trading. The premise of complete transaction is to pay a certain percentage of deposit, without actually transferring the principal, and the contract is settled by cash spread.