What are the properties of financial derivatives?

Derivative financial assets are also called financial derivatives. Financial derivatives, also known as "financial derivatives", are a concept corresponding to basic financial products, which refer to based on basic products or basic variables. Derivative financial products whose prices change with the price (or value) of the underlying financial product. The basic products mentioned here are a relative concept, including not only spot financial products (such as bonds, stocks, bank time deposit certificates, etc.), but also financial derivatives. Variables that are the basis of financial derivatives include interest rates, exchange rates, various price indexes, inflation rates and even weather (temperature) indices.

Financial derivatives (derivative security) are financial instruments that are derived and derived from traditional financial instruments such as currencies, bonds, and stocks, and are characterized by leverage and credit transactions.

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