The underlying assets are traded in the same way as stocks or other financial instruments. The prices and trends of derivatives such as futures, options and swaps are greatly influenced by the performance of the underlying assets. But in fact, financial derivatives often push the spot market in turn, and some futures and options are more active than the spot market. Financial derivatives can be traded on the stock exchange or over the counter.

In derivative contracts, the party who agrees to buy the underlying assets in the future is called a long position, and the party who sells the assets is called a short position. When the derivative contract expires, the parties to the contract do not really buy or sell the underlying assets. Usually, they just calculate the net cash gains and losses of derivative positions and make cash delivery for these gains and losses. According to the inherent characteristics of the underlying assets and the different trading markets, options can be divided into financial options and real options. The reason for this classification is that the determination and change of option value is based on the value of the underlying asset, and the change of the underlying asset value is determined by its internal characteristics and the trading market.

I. Financial options

Financial option is an option based on financial assets. Compared with physical assets, financial assets have many good characteristics, such as currency, separability, reversibility (the cost of withdrawing from investment), liquidity, risk and convertibility. These characteristics make the financial market have a special trading mechanism and equilibrium mechanism compared with the physical market.

1, common option. Ordinary option is an option as a derivative financial instrument and also an option in a narrow sense. Including on-site standardized option contracts and off-site option contracts traded in the option market. Its basic assets are equity, debt and derivative financial products, such as stock options, foreign exchange options, interest rate options, stock index options and futures options. It is an important financial tool in the field of modern finance.

2. Embedded option. Implicit options refer to options embedded in another kind of securities, such as callable securities, repayable securities and convertible securities, which all contain options.

The underlying assets of the above implied options are financial assets such as stocks and bonds.

3. binary options. Binary options is one of the simplest financial transaction tools. Other financial assets can be selected as the basic assets, which are initially used to hedge the risks of the portfolio. With the emergence of online transactions, binary options has developed rapidly. Compared with traditional financial trading tools, binary options is simpler, and only needs to judge the future price fluctuation of the underlying assets, without considering the price fluctuation range; Another advantage of binary options is that it has a wide range of applications, and the underlying assets that can be selected are very rich. For example, in the FX77 option binary options, you can choose stocks, indexes, foreign exchange, commodities and other financial assets 100 as options. At the same time, binary options is an investment mode with fixed income and risk, and the option contract is allowed to be as low as several dollars. Before investing, traders have determined the expected returns and risks, which makes binary options convenient for ordinary small and medium-sized investors to trade in the global financial market, and the risks can be decided by investors.

Second, real options.

Real option is the most common option. The underlying assets of real options are all kinds of real assets. Physical assets refer to assets that can create wealth. Like the financial asset market, the price of physical assets also reflects the relationship between supply and demand of physical assets. 1. The basic assets of securitization must have a certain stock scale in order to form an asset group with similar conditions and effectively build an asset pool for credit guarantee and credit upgrading.

2. Assets with predictable and stable cash flow. When the cash outflow of ABS is fixed, if its cash inflow is unstable or even "cut off", then the issuer or guarantee institution of ABS will inevitably face payment risk or even payment crisis.

3. Assets must be reconfigurable. The essence of asset securitization requires that the maturity, risk and income levels of various assets in the portfolio are basically similar.

4. The credit rating of assets should be very clear, that is, there should be clear guarantee support.