Edit: Rong 360 finishing
Source: Rong 360
Structured wealth management products are financial products that use financial engineering technology to combine fixed-income products such as deposits and zero-coupon bonds with financial derivatives (such as forwards, options, swaps, etc.) to form a new type of financial product. The financial derivatives in which the combination is the target
InBank wealth management productsThere is a type of structureFinancial product. Structural typeFinancial managementProducts are financial products that use financial engineering technology to combine fixed-income products such as deposits and zero-coupon bonds with financial derivatives (such as forwards, options, swaps, etc.) to form a new type of financial product. The financial derivatives that are combined areHooked target.
When investing in such wealth management products, we must first understand the relationship between the target and the product's return, that is, how the product will be profitable when the target is displayed; the second is to understand the past performance of the target, so as to form its own judgment on its future. The above two points are particularly important for investing in structured wealth management products. The more complicated the bank wealth management products are linked,
The greater the risk, the more investors should choose to link the simple and clear products.
Classification of financial derivatives: forwards, options, swaps
Forward contracts and futures contracts are forms of transactions that the parties agree to buy and sell a particular quantity and quality asset at a specific price at a particular time in the future.
A forward contract is a contract signed between the buyer and the seller based on the special needs of the buyer and the seller. Therefore, futures trading is highly liquid and forward trading is less liquid.
An option transaction is a transaction in which the right to buy or sell. An option contract specifies the right to buy or sell a particular type, quantity, and quality of a native asset at a particular price at a particular time. Option contracts have standardized contracts that are listed on the exchange, as well as non-standardized contracts that are traded on the counter.
A swap contract is a contract signed between two parties to exchange assets at a certain point in the future. More precisely, a swap contract is a contract between parties that exchanges cash flows that they believe are of equal economic value for a certain period of time in the future. More common are interest rate swap contracts and currency swap contracts. The exchange currency specified in the swap contract is the same currency, which is the interest rate swap; if it is the foreign currency, it is the currency swap.