What are derivatives and non-derivatives?

1. Derivatives are a special type of financial instrument.

The rate of return on this type of trade is derived from the performance of a number of other financial factors.

Such as assets (commodities, stocks or bonds), interest rates, exchange rates or various indices (stock index, consumer price index, weather index).

The performance of these factors will determine the rate of return and timing of returns on derivative instruments.

The main types of derivatives include futures, options, warrants, forward contracts, swaps, etc.

2. Non-derivative instruments are the parent instruments of financial instruments, that is, basic financial instruments in the general financial market, including currencies, bonds, convertible bonds, stocks, etc.

Warm reminder: 1. The above explanation is for reference only, without any suggestions.

2. There are risks in entering the market, so investment needs to be cautious.