Definition: Derivative financial assets are also called financial derivatives

[Edit this paragraph] Overview

Derivatives of financial assets are financial innovations Products, that is, by creating financial instruments to help managers of financial institutions better control risks. Such tools are called financial derivatives. At present, the most important financial derivatives include: forward contracts, financial futures, options and swaps, etc.

[Edit this paragraph] Derivatives

Derivatives refer to financial instruments or other contracts that are covered by the Accounting Standards for Business Enterprises and have the following characteristics:

①Other The value changes with changes in specific interest rates, financial instrument prices, commodity prices, exchange rates, price indexes, fee indexes, credit ratings, credit indexes or other similar variables. If the variable is a non-financial variable, the variable has no relationship with any party to the contract. There is no specific relationship.

② No initial net investment is required, or very little initial net investment is required compared with other types of contracts that have similar responses to changes in market conditions.

③Settled at a certain date in the future.

[Edit this paragraph] Common derivatives

(1) Futures contracts. Futures contracts refer to standardized contracts formulated by futures exchanges that stipulate the delivery of a certain quantity and quality of physical commodities or financial commodities at a specific time and place in the future.

(2) Options contract. An option contract refers to an option contract that can be obtained by the buyer of the contract after paying a certain amount of money. Currently, the warrants launched in our securities market are call options, while the put warrants are put options.

(3) Forward contract. A forward contract refers to a contract in which the two parties agree that the buyer will purchase a certain quantity of the subject item from the seller at an agreed value on a certain date in the future.

(4) Swap contract. A swap contract refers to a contract in which the two parties exchange a series of cash flows within a certain period in the future. Depending on the subject matter of the contract, swaps can be divided into interest rate swaps, currency swaps, commodity swaps, equity swaps, etc. Among them, interest rate swaps and currency swaps are relatively common.