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No need to pay full amount at the beginning Premium is only paid at the beginning .If it goes out of the money then the option may not be executed.The maximum loss for the option holder is only the premium.We can customize the trade in options.Money can be witness at the end of the expiration date.Reward is higher than spot market.
A trader need future/call/put because the trader can trade in both direction that is buy and sell and sell and buy. Trader can first sell without having any shares and buy it back later when price is low. This gives him the added advantage of making money on down trend unlike cash market.
Cash is settled on a daily basis and adjusted at the end of the day daily. In cash market only when trader sells the stock he realizes profit.
The margin required is only a small percentage of the actual amount. This gives the advantage to trade in more number of shares.
Trader need not to invest money on spot (similar to cash market)
Trader can invest small volume of amount during initial phase, and gain more profit/loss, proper market knowledge is not needed for this derivative market, however trader need to buy as a lot volume
Option provides the right without obligation
A trader needs the futures/call/put in order to maximize the returns and minimize the risk.
In fact if we see ..future segment plays very big role when we are very sure about our trade
but we don’t have whole amount to pay then we can buy big quantity by giving very less amount called margin
instead of paying the whole amt
where else Call & Put option becomes very handy when we want to customize our trade
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