SakuraFestival
Fri May 17 2024
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6 answers
956
Why buy futures instead of stocks?
I've been hearing a lot about futures trading lately, but I'm still not entirely sure why I should choose futures over stocks. Could you help me understand the advantages of futures trading? I've invested in stocks for years, and they've generally given me stable returns. What does futures trading offer that stocks don't? Is it more risky? Or does it have potential for higher returns? Also, I'm curious about the leverage aspect of futures trading. How does it work, and what are the risks involved? Finally, can you explain the role of speculators in futures markets? I've heard they can have a significant impact on prices. Overall, I'm just trying to get a better grasp of why someone might prefer futures trading over traditional stock investing.
Martino
Fri May 17 2024
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7 answers
1126
Why are futures more expensive than options?
Could you please explain why futures are priced higher than options? I've noticed this trend in the cryptocurrency market and it's piqued my interest. Is it because futures contracts carry a higher level of obligation and risk? Or does it have something to do with the leverage involved? I'm trying to wrap my head around the intricacies of pricing mechanisms in the derivatives market. Could you break it down for me in a way that's easy to understand? I'd really appreciate it if you could clarify this matter for me.
