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

[clintonfernando]

A trader should need the futures / call / put because  it encourages the people to trade.

[tamilselvi]

the  capital required is less..

[Suriyaprabu]

Because the investment required is low and both buyers and sellers make profit

[Ayyasamy muthukumar]

Risk taken in one equity trade / derivative trade can be minimized by choosing another derivative product.

Spot market needs 100% capital where as in derivatives market the capital requirement is less.

Profits can be realized on day to day basis.

[Divya S]

• to take advantage of price fluctuations in the short term
• conduct transactions without actually selling shares
• tranfer of risk
• protects against rise in price of shares in call option
• protects against fall in price of shares in put option
• needs less investment

[Author]

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