Question-1 My doubt is if derivative market is not less volaatile as compare to spot market so why not it’s high volatile?
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The correct statement would be as “Derivative market may or may not be more volatile than spot markets”.
reason bro
Derivative market are generally more volatiles than the spot market because of the given advantages like low capital requirement or lower transaction cost. A small change in the price of the underlying is captured by marginal change in the relative derivative.