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Why Futures trade is known as ZERO-SUM-GAME?
Although traders can bear loss on their trading portfolio, but due to the nature of the trading they can choose the way of physical delivery. Due to this nature of trade, traders can go for option either to receive physical assets which were previously bought or seller can buy back from market which was previously sold. On another hand trader can choose way to enroll existing trading contract for the next trading calendar, fulfilling the spread difference of out going contracts and new contracts, by this way they can catch the opportunity to stay in market for the potential profit optimization. |
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