What is Financial Instrument?

A financial instrument is any type of financial asset or contract that can be traded and exchanged between different types of network participants. Normally, financial instruments include derivatives (such as futures and options contracts), securities (stocks and equities), cryptocurrencies, commodities (such as gold and silver), fiat currencies (via forex trading), and debt instruments such as bonds or loans, among other asset types. Financial instruments are typically traded on a stock exchange, through a stock broker, or via an asset exchange.