Futures and options are the most liquid and diversified method of trading stocks. There is no need to buy actual stocks and yet profit can be made. The exchange takes/gives money based on MTM and thus the trader gets an update everyday, and it is ensured that there are no defaulters.
Using futures and options short position can be taken for weeks/months while it is an intra-day affair in the spot market. In spot market, the trade occurs on the same day and the trader gets the settlement for stock/cash before the exchange closes.
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