Derivatives are financial instruments whose value depends on the price of an underlying asset. Derivatives provide for the rights and/or obligations of the contracting parties for the payment and/or delivery of the underlying asset at a pre-agreed price at a certain time in the future. future. The underlying asset of a derivative can be a commodity such as agricultural products, metals, etc., or a financial instrument such as stocks, bonds, interest rates, etc.
Main functions of derivative software:

1. EASY, CONVENIENT TRANSACTIONS

Futures trading is similar to stock trading. Investors who predict the market will increase will place buy orders to open long positions in futures contracts, when the market rises as expected, investors will get profits. Conversely, investors can open a short position in futures contracts to make a profit in a down market.

2. BENEFITS FROM HIGH LIGHT RATE

With the feature of only needing to deposit a part of the contract value, the futures contract will give investors a very high level of leverage, making the profit received can be much larger than investing in stocks. However, high leverage can also bring great losses if the market goes against the investor's prediction, so investors need to keep a close eye on the market when holding a futures contract.

3. CAN BUY/SELL CONTINUOUSLY IN THE DAY

If in stock trading, after buying shares, investors have to wait 2 days for stocks to return to their accounts before they can sell, then in futures trading, the benefits from investors having You can immediately close an opened position (whether long or short). Thus, investors can continuously open and close positions during the session to seek profits on all market fluctuations.

4. OPPORTUNITY TO FIND PROFITS EVEN WHEN THE MARKET DECIDES

Currently in the stock market, investors do not have the tools to find profits in the falling market. However, with futures contracts, investors can completely do this. An investor may enter into a short position in a futures contract at any time, the only condition that must be met is the deposit of the required amount of margin before entering the contract. When the index falls as expected, the investor gets a profit from his futures sale.