Edit: Financial 360 finishing
Source: Fusion 360
Structured wealth management products are a type of new financial products formed by combining financial products and fixed income products such as deposits and zero-coupon bonds with financial derivatives (such as forwards, options, swaps, etc.). The combined financial derivatives are linked to
InBank financial productsThere is a type of structureFinancial product. Structural typeFinancial managementProducts are a kind of new financial products formed by using financial engineering technology to combine fixed income products such as deposits and zero-coupon bonds with financial derivatives (such as forwards, options, swaps, etc.). The combination of financial derivatives isLinked to.
When investing in such wealth management products, it is necessary to first understand the relationship between the linked target and the product revenue, that is, how the product linked to the target's performance has a return. Second, it is to understand the past performance of the linked target and form its own judgment on its future. The above two points are particularly important for investment-structured wealth management products. The more complicated the bank’s financial products are linked to,
The greater the risk, investors should try to choose simple and clear products linked to the target.
Classification of financial derivatives: forwards, options, swaps
Both forward contracts and futures contracts are transactional forms agreed by both parties to the transaction at a specific time in the future, at a specific price, and for trading a specific quantity and quality of assets.
A forward contract is a contract signed by the buyer and the seller based on the special needs of the buyer and the seller. Therefore, the liquidity of futures trading is higher and the liquidity of futures transactions is lower.
Options trading is the trading of trading rights. An option contract provides for the right to buy or sell a particular type, quantity, or quality of native assets at a specific time and at a specified price. Options contracts have standardized contracts listed on exchanges and non-standardized contracts traded on the counter.
A swap contract is a contract that is signed for both parties to exchange certain assets at a certain time in the future. More precisely, a swap contract is a contract between parties that exchanges cash flows that they believe have equal economic value in a future period. More common are interest rate swap contracts and currency swap contracts. If the swap currency specified in the swap contract is the same currency, it is the interest rate swap; if it is a different currency, it is a currency swap.