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

[Padmanabha Participant Rank: Level 2]

Futures/ call/put are required for traders to customize the trading. In the derivative market, the entire stock price is not required and only margin needs to be paid. And derivative markets reflects the price fluctuation on daily basis but in equity market, it can be realized only when the stocks are sold. Here, the percentage of Profit/Loss is much higher compared to Equity market.

[J Santhosh Kumar Participant Rank: Level 3]

These are the contracts where one doesnt need to invest full capital to hold the stock but only margin amount is enough to enter in to futures or options.

There are certain traders who wont really like to hold shares but like to posses the profit of gain or loss over the rise or fall in price. Futures helps to meet the criteria if some thing goes wrong in the future there by making a safer contract. options gives lots of options to buy or sell the rights and can able to plan well with the options derivative.

[Divya E R Participant Rank: Level 3]

Futures/ call/put options are required for traders to customize trading. In the derivative market, the entire stock price is not required and the only margin needs to be paid.

[Author]

Posts