Financial Derivative Products, The Risk Of Regulatory Studies

With the globalization of the financial market deepening, the risk of which is getting wider. Meanwhile, by using the derivatives, the need to avoid those risks gets stronger and more and more financial investors gets higher profits. The mature experience of applying all kinds of derivative financial instruments to the financial market deserves study by us. As the important investment tool, however, financial derivatives cause boundlessly large risks if they are not managed in proper ways, even bring us the global finance crisis.This paper will start with some basic concepts to analyze the financial risks of derivative financial instruments and to do some basic research of how the risks come out. Finally it will give some advices for the cooperation of supervision, in order to improve the development of derivative financial instruments.