Advantages of Trading Derivatives – Options and Futures

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Advantages of Trading Derivatives – Options and Futures

Although trading derivatives such as options and futures can be very profitable, it may not be for those who are not able to deal with risks. These are considered as sophisticated types of investments so those who would like to trade using these instruments have to be serious about it. Those who are used to less riskier investments such as bonds or stocks may find trading options or trading futures not for them. They have to be able to take the higher levels of risks involved and deal with the losses that they may encounter.

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