Currency Futures - Reliance Smart Money

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Currency Futures - Reliance Smart Money

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Futures and options are the most common types of derivatives. Both of these instruments derive their value from an underlying asset or instrument. Moreover, both of these have their own advantages and disadvantages. Although, futures have some significant benefits over options. A future contract is basically an agreement between a buyer and seller to buy or sell an asset at a fixed price. – PowerPoint PPT presentation

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Title: Currency Futures - Reliance Smart Money


1
Top 4 Benefits of Futures Over Options
2
Liquidity
  • This is one of the major benefits of futures over
    options. Most future markets are very liquid and
    deep, especially in the most commonly traded
    commodities, indexes, and currencies. Therefore,
    this assures that traders can enter or exit
    positions anytime when required. On the other
    hand, options may not have sufficient liquidity.

3
Futures are best for trading certain investments
  • Future may not be the best way for stock trading,
    but they are great for trading certain
    investments such as indexes, currencies, and
    commodities. Their exceptional features and very
    high level of leverage make them very useful for
    the risk-tolerant retail investors. In fact, it
    allows investors to participate in the market to
    which they might not have any access.

4
Fixed trading cost
  • The margin requirement for both commodity and
    currency futures are well known because they have
    not been changed for years. Margin requirement
    may be changed when an asset is volatile, but in
    most of the cases it remains unchanged.

5
No time waste
  • This is one of the best advantages of futures
    over options. Options are waste assets as their
    value declines over time, which is known as time
    decay. There are several factors that influence
    the time decay of an option. Moreover, an option
    trader has to pay attention to this thing as it
    can severely tear away the profitability of an
    option. On the other hand, futures do not have to
    cope with time decay.

6
  • Besides, while buying or selling currency
    futures, you can choose Reliance Smart Money as a
    currency trading platform.
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