Trading Instruments

Definition ∞ Trading instruments are financial assets or contracts that can be bought and sold on organized markets. These instruments are used by investors and traders to speculate on price movements, hedge against risk, or gain exposure to various asset classes. Examples include stocks, bonds, options, futures, and cryptocurrencies.
Context ∞ The current discourse on trading instruments in the digital asset space often involves the proliferation of new derivatives and structured products built on blockchain technology. Discussions frequently center on the regulatory oversight of these novel instruments and their potential impact on market volatility. A critical future development to watch is the increasing convergence of traditional and digital trading instruments, potentially leading to more integrated and accessible global markets.