Question

Following are the advantages of trading in derivative market​

Answer 1

Answer:

Lower transaction costs: Derivatives help to reduce market transaction costs as they act as a risk management tool. Hence, the cost of trading in them is comparatively lower than other segments.

Answer 2

Answer:

Lower transaction costs: Derivatives help to reduce market transaction costs as they act as a risk management tool. Hence, the cost of trading in them is comparatively lower than other segments.