Financial derivatives are a double-edged sword. At first, people hoped to use financial derivatives to avoid the risks caused by the price changes of basic financial instruments. However, with the development of financial derivatives, while avoiding risks, it also brings new risks, and high risks are difficult to control. ?

(a) the characteristics of financial derivatives risk?

First of all, financial derivatives have double risks. Financial derivatives are financial products evolved from traditional financial instruments, and their high risks include not only the risks caused by various factors in their own operation, but also the risks transmitted by traditional financial instruments. That is, the overall risk of financial derivatives should be the sum of all kinds of risks in financial markets and the risks of traditional financial instruments transferred to financial derivatives, which is the duality of financial derivatives risks. ?

Second, the risks of financial derivatives are hidden and unknown. The essence of financial derivatives is an unfulfilled contract, which is an agreement on the rights and obligations that may arise in the future, so the trading time and amount are uncertain. In addition, the gains and losses arising from financial derivatives transactions are "off-balance-sheet items", so it is difficult or even impossible to accurately reflect the trading situation and profit and loss degree of financial derivatives through accounting statements in time. Therefore, the opaque trading of financial derivatives can easily hide losses and risks. ?

Third, the risks of financial derivatives can be infinitely magnified. With the development and innovation of financial derivatives, their complexity is getting higher and higher. Many financial derivatives have to be split, packaged and changed hands many times in the market. In this way, the crisis of financial derivatives has expanded and the risks have been amplified again and again. ?

Financial derivatives, also known as financial derivatives, is a concept corresponding to basic financial products, which refers to derivative financial products whose price changes with the price (or value) of basic financial products.

The basic product mentioned here is a relative concept, including not only spot financial products (such as bonds, stocks, bank time deposits, etc.). ), including financial derivatives. The basic variables of financial derivatives include interest rate, exchange rate and various price indexes.