Benefits of Futures Over Options
Simpler Pricing Structure: Futures pricing is straightforward, based on the underlying asset's value, without complex factors like implied volatility.
Higher Liquidity: Futures markets typically have more liquidity, enabling easier entry and exit from positions.
Hedging Precision: Futures offer better risk management for hedging due to their standardized contracts and direct relation to underlying assets.
No Premium Payment: Unlike options, there is no upfront premium cost for entering a futures position.
Ease of Leverage: Futures provide significant leverage, allowing traders to control larger positions with less capital.
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