Financial derivatives represent a stage of economic development. The more developed the economy, the more financial derivatives there will be. The more derivatives, the more ways to manage money. It also shows that the leverage and security of financial derivatives in the economy are more active and effective, which can promote the sustainable development of the economy.
There are many ways to make money from financial derivatives. Let me tell you something for your reference:
First of all, the forward futures market is the main part of financial derivatives. It should be noted that most forward futures transactions are conducted outside the exchange. For example, oil companies and investment banks often do forward futures transactions, and the efficiency of making money is not fast, but it is very stable.
Second, another major model of financial derivatives is the futures exchange that we are familiar with. Futures trading requires margin. Now, the world-famous CME and new york Petroleum Exchange are more risky but more profitable.
Third, the OTC market is a concentrated expression of financial derivatives, which has developed fastest in the west in the past decade. At present, the threshold for intervention is relatively high, and ordinary people basically have no chance.
Fourth, the stock market is also a financial derivative. The stock market is profitable by buying and selling stocks, and the risk of the stock market is relatively high. Moreover, stocks must be specialized in enterprises, otherwise it is almost impossible to make money.
Fifth, the bond market is a manifestation of financial derivatives. National debt, corporate debt and local debt all belong to this category. The threshold for buying these bonds is relatively low, the income is stable, and there is no great risk.
Based on the above analysis, we can see that financial derivatives are actually an investment model and a financial management model, which is the product of economic development. However, when we invest in financial derivatives, we should pay attention to risks. If we don't have professional knowledge, we'd better stay away!