Derivative financial instruments refer to new financial instruments derived from traditional financial instruments. A contract whose value depends on changes in the value of the underlying assets. This kind of contract can be standardized or non-standardized.
Standardized contracts are indicators that the transaction price, transaction time, asset characteristics and transaction methods of assets are standardized in advance, so most of these contracts are listed and traded on exchanges, such as futures. Non-standardized contracts mean that the above items are agreed by both parties to the transaction, so they have strong flexibility, such as forward contracts.
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Financial derivatives can be classified according to the types of basic instruments, risk-return characteristics and their own trading methods.
1. According to product classification, financial derivatives can be divided into independent derivatives and embedded derivatives.
2. According to the classification of trading places, financial derivatives can be divided into OTC derivatives and OTC derivatives.
3. According to the classification of basic instruments, financial derivatives can be divided into equity derivatives, currency derivatives, interest rate derivatives, credit derivatives and other derivatives.
4. Financial derivatives can be divided into financial forward contracts, financial futures, financial options, financial swaps and structured financial derivatives according to their own trading methods and characteristics.
Baidu encyclopedia-derivative financial assets
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