Financial derivatives can be divided into two categories by transaction form: 1. On-exchange trading: The vast majority of options and futures transactions are on-exchange transactions and have standardized contracts.

It can be used to hedge and close positions, and it is a train that one can get off midway.

2. Over the counter (OTC): Over the counter market, also known as the over-the-counter market.

Forwards and swaps are over-the-counter transactions, and both parties negotiate and sign agreements independently.

It must be delivered, and it is a plane that cannot be disembarked midway.

Financial derivatives are divided into three categories according to product form: 1. Financial forward: a contract in which both parties agree to exchange financial assets at a certain price on a certain date in the future.

2. Financial futures: A contract between buyers and sellers in the form of public bidding in an organized exchange to deliver a standard quantity of a specific financial instrument at a specific time in the future.

3. Financial options: The parties to the contract reach an agreement on whether to buy or sell a certain financial instrument at an agreed price and within an agreed date.

4. Financial swap: a financial transaction in which two or more parties exchange certain payments at an agreed time according to the conditions agreed upon by the parties.