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

[Anitha Xavier]

<span style=”color: #777777; font-family: ‘Roboto Slab’; font-size: 13px;”>In Futures the transaction takes place at present & settlements are done later.</span>

<span style=”color: #777777; font-family: ‘Roboto Slab’; font-size: 13px;”>Call options are needed by the buyer to get the rights to buy the share without obligationPut options are needed by the buyer to get the rights to sell the share without obligation</span>

[Praveen N]

Futures: The deal happens now, but settlement happens later.

Call and put option is used to reduce the downside risk.

 

[Poojitha Konduru]

In Future option the deal is fixed between the traders and the settlement takes place at a future date.

The call or put option is required to reduce the downside risk.

[Angelin Monica]

capital needed is less. Trader can hold the share. He can buy or sell at any time within the expiry date.

[Vimal Kumar]

The trader uses these instruments to mitigate the risk. The profit is more and the capital required is also low.

[Author]

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