Benefits of trading in Futures and Options.
Benefits of trading in Futures and Options.
1) Able to transfer the risk to the person who is willing to accept them
2) Incentive to make profits with minimal amount of risk capital
3) Lower transaction costs
4)Provides liquidity, enables price discovery in underlying market
5) Derivatives market are lead economic indicators.
6) Arbitrage between underlying and derivative market.
7) Eliminate security specific risk.
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