who uses cryptocurrency Overview

1. The nature and risks of derivative financial products2. The relationship between the market base of derivative financial products and the stock market.1. The nature and risks of derivative financial products

First, the basic position of the stock capital market1. The nature and risks of derivative financial productsThe stock market also has the function of resource allocation. The rising stock market can guide the flow of funds to enterprises with good efficiency and development potential, and realize the optimal allocation of resources. When the stock price does not rise, the flow of funds may be stagnant or disorderly, and those high-quality enterprises that should have been supported by funds may be ignored, resulting in waste of resources and inefficient allocation.

Second, the dependence of derivative financial products on the stock marketStock capital market: if the stock price base does not rise, all other derivatives will be zero.In the complex and charming financial world, the stock capital market is like the cornerstone of a magnificent building, while other derivative financial products are like building structures attached to this cornerstone. Once the stocks in the stock capital market do not rise, those seemingly diverse and exquisite other derivative financial products are almost equal to zero.