Derivation: refers to a new substance (such as substitution or hydrolysis) produced by evolution and obtained from the mother. Such as derivatives, derivatives, etc.

Derivative financial instruments (also known as derivative financial products) are derivatives of original financial instruments (such as stocks and bonds). Simply put, it is to predict the future market trends of financial instruments such as stock prices, interest rates and exchange rates, pay a small amount of margin, sign forward contracts or exchange derivative trading contracts of different financial products. Forward contracts, futures contracts, options, swaps, NIF, interest rate ceiling and interest rate floor all belong to this category.

Equity instruments refer to contracts that can prove that an enterprise has residual rights and interests in assets after deducting all liabilities. For example, common shares issued by enterprises, warrants issued by enterprises, which give holders the right to buy a fixed number of common shares of enterprises at a fixed price, and so on.

Debt instrument is a kind of financial instrument that will form creditor's rights and debts, such as various bonds.

An effective hedging tool, I have never heard of it, maybe it is hedging.