Financial derivatives and non-derivatives

1. The difference between derivative financial instruments and non-derivative financial instruments is that the change of derivative instruments depends on the change of another financial instrument.

2. According to the definition of financial instruments, financial instruments are divided into basic financial instruments (non-derivative instruments) and derivative instruments. Non-derivative instruments are actually basic financial instruments. Derivative instruments, such as stocks, bonds, cash and accounts receivable, are instruments composed of or derived from another financial instrument (including derivative instruments and non-derivative instruments). Derivatives can also be elements that make up derivatives, so derivatives can be complicated.

3. The main difference with non-derivative financial products is that non-derivative financial products refer to basic financial instruments, such as accounts receivable, bills, securities, bonds, etc., which are relatively traditional financial instruments. Derivative financial instruments are financial instruments derived from basic financial instruments, such as futures, options, currency swaps and interest rate swaps.

Extended data

The difference between non-derivative financial instruments and derivative financial instruments

According to the definition of financial instruments, financial instruments are divided into basic financial instruments (non-derivative financial instruments) and derivative financial instruments.

Non-derivative financial instruments are actually basic financial instruments. Such as stocks, bonds, cash, accounts receivable, etc.

Derivative financial instruments are instruments (including derivative instruments and non-derivative instruments) composed of or derived from another financial instrument. Derivatives can also be elements that make up derivatives, so derivatives can be complicated.

The difference is that the change of derivative financial instruments depends on the change of another financial instrument.

Reference materials? Baidu encyclopedia-financial derivatives

Baidu Encyclopedia-Non-derivative financial instruments