crypto vs digital currency Top Knowledge graph

Second, the dependence of derivative financial products on the stock marketFirst, the basic position of the stock capital market2. The function of capital accumulation and resource allocation in the stock market.

(All text materials are automatically generated by ai intelligence)Second, the dependence of derivative financial products on the stock marketDerivative financial products, such as futures, option icon, funds, insurance, etc., are financial products derived from basic assets such as stocks and bonds. Their value is derived from the price changes of the underlying assets. For example, stock option is a derivative product based on stock, and its value depends on the price fluctuation, maturity time, volatility and other factors of the underlying stock. If the stock market does not rise and the stock price lacks fluctuation, then the value of stock options will be difficult to be reflected. Moreover, derivative financial products themselves have high risks, and their price changes are often more violent than the basic assets. When the stock market does not rise, the high-risk characteristics of derivative financial products will be amplified, and investors may suffer huge losses.

Second, the dependence of derivative financial products on the stock market2. The function of capital accumulation and resource allocation in the stock market.Stock capital market: if the stock price base does not rise, all other derivatives will be zero.