ShintoMystical
Fri May 17 2024
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6 answers
1589
Why futures are safer than options?
Could you please elaborate on why futures are considered safer than options? I'm trying to understand the risk profile of these two financial instruments and how they differ. In futures, does the contract's standardized nature play a role in its safety? And with options, what specific risks make them less safe compared to futures? Additionally, how does the margin requirement affect the safety aspect of these investments? I'm particularly interested in the level of leverage and potential losses involved in both. Could you also provide some examples or scenarios to illustrate these points? Thank you for your assistance in clarifying this topic.
