Description: People can trade in an underlying asset for a future date through derived financial contracts, called future contracts. Traders use these future contracts to generate huge profit from an eminent future move in stocks, bonds, currency, commodities. Like most financial contracts, both parties must transact assets at a predetermined future date and price. You might think about the need to use a future contract when one could trade on that date too. The answer to this lies in simple reasoning, which you can understand through the following example rarely taught in stock market courses for beginners:
Category: Finance
Tag: Goela School of Finance, harsh goela