Derivatives, classification (classification of derivatives)
There are various classifications of derivatives. One of the most common in recent years is the classification into – options, – forward transactions in the narrower sense as contracts traded over the counter, forwards, – forward contracts as standardized contracts traded on the stock exchange, futures and swaps. – In legal terms, a distinction is generally made between – options on the one hand, which are conditional forward transactions because the fulfillment of the underlying transaction is dependent on the exercise of the right of one of the contracting parties, and – futures, forwards and swaps on the other hand, all three of which are unconditional forward transactions.
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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
E-mail address: info@ekrah.com
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