In this manner , they transfer the risk of loss to those others who are ready to take it .
In return for the hedging available , they need to pay a premium to the risk taker . Trading in the derivatives market is a lot similar to that in the cash segment of the stock market . However , remember that the strategies need to differ from that of the stock market .
In return for the hedging available , they need to pay a premium to the risk taker . Trading in the derivatives market is a lot similar to that in the cash segment of the stock market . However , remember that the strategies need to differ from that of the stock market .
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