Why should a trader need the futures/call/put?

[Priya Vignesh]

Derivative instruments are needed to make the trade easy

[Aravind T]

If a trader has a well defined perspective on the price trend of a stock or commodity then he can go for futures/call/put that is the trader can customize his trade according to his needs.Also, the trader need not invest the entire money and he can pay a small amount called margin and then he can sign the contract.

[Leena Nathan]

For protection against adverser future price movements

[murugan]

These futures and put options helps to maximize the return and minimize the risk.

[shivkant]

– trader need future option because it provide insurance if he expect price may go up or down in-case if it happened the margin of price went up or down will be paid to the buyer or seller accordingly.

– if we expect price to go up we go for call option in which we buy rights to buy with no obligation by paying premium

– if we expect price to go down in we go for put option in which we buy rights to sell with no obligation by paying premium

 

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