Hello,
Please help me in understanding point no. in disadvantages in answer 17.
Thanks.
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So it is basically saying
Derivatives mainly are having weekly or monthly expiry so they need to be rolled over again n again incurring transaction cost
If derivative is exchange traded which is standard product may not satisfy our exact hedging requirements
And if u go for otc their will be counterparty risk
And mostly contract comes in big lot size which is another disadvantage
Thanks for quick reply.
Please explain point. no. 2 in your write up.
Thanks.
I mean, Please elaborate more. I haven’t understood that only.