In the process of investment and financial management, according to the risk, it is followed by national debt, bank financing, bonds, stocks and financial derivatives. Among these five financial products, financial derivatives have the greatest risks and the highest expected returns. Everyone is familiar with the first four categories, so what are the financial derivatives? In fact, in the process of investment, these five are the most common and must be taken seriously.

1, futures

This is the financial derivative wealth management product that investors participate in the most. Futures refers to standardized contracts for bulk products such as soybeans and gold that will be traded on designated exchanges at some time in the future.

For example, rebar futures traded on the Shanghai Futures Exchange are standard futures.

Step 2 exchange

This kind of wealth management product is not common, but common in transactions between institutions. For example, currency swap refers to a transaction in which one institution and another institution agree to exchange one basket of currencies for another at some time in the future.

3. Long-term

This derivative wealth management product is similar to a swap. Forward refers to a contract that both parties agree to conduct forward transactions according to their own needs, which is often used in the exchange rate trading market.

4. Foreign exchange

This is also a relatively common derivative financial product. Foreign exchange refers to the exchange rate between one country's currency and another country's currency, such as RMB against the US dollar, which is a foreign exchange transaction.

Step 5 choose

Options are divided into two parts: the buyer pays royalties to obtain an agreed right, and the seller refers to obtaining royalties and fulfilling an agreed obligation in the future. The two are opposites.

The above five are the most common financial derivatives. Tips: Financial management is risky, and investment needs to be cautious.