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Tagged: Need of Derivatives
These trading instruments are needed to mitigate the risks, and thereby maximizing the margin of profit.The investment needed is also less when compared to equity market.
The trader gets benefits with low margin don’t need huge capital to trade in stock market & return on investment is huge.
Futurea and options have lower risk and one does not need a high capital to trade.
trades needs future/call/put for hedging purpose.another benefit is that trades can get more with less margin comparitvly in equity
The traders need futures, call and put as trading instruments to utilize the price movement in both direction and derive profit from it with little investment. It gives us a variety of trading opportunities.
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