By setting up the saffron deal option the risk of farmers is reduced
Mohammad Reza Sarmadi, a capital market expert, said: In general, the most important feature of the options trading tool is to insure future prices, and the product of saffron is no exception.
Commenting on the launch of Saffron futures in May this year, the capital market expert said: “The positive thing that happened in the Saffron market this year was the launching of futures deals on the stock exchange, which was also a good welcome in this regard. Farmers and investors and players in the upcoming market.
He described the key features of the trading instrument as an option to deal with future contracts, with less transaction risk and low return on investment, adding that these types of contracts will reduce the risk of transactions for farmers in the future, and reduce the price of the franchisor to the capital Less work is needed to conclude these contracts.
According to the expert on the capital market, emphasizing the need for courses and training courses for saffron and capital market participants, said: Given the fact that the option is a complex tool and the possibility of adopting mixed trading strategies between the future and the cash market doubles the complexity, The lovers of the deals presented luckily training courses by the stock exchange.
He noted the entry of professional actors in the upcoming market to the option of saffron deals positively, and stated: “With the arrival of arbiteragers and professional actors of futures markets and futures contracts to options options, the market for these new financial instruments will deepen, and farmers and saffron The depth of the market benefits more.
It is good to deepen the certificates of merchandise and futures contracts as an important factor in boosting the availability of Saffron options and said: Given the volume of futures trading of saffron in the stock exchange, it is better if the maturity of options contracts is farther away.
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