Why Might a Speculator Prefer to Trade Futures Contracts Rather

question 20

Essay

Why might a speculator prefer to trade futures contracts rather than the underlying asset?

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Definitions:

Title

Legal ownership rights to property, signifying that the owner has the legal right to use, control, and dispose of the property.

Goods Sold

refers to merchandise that has been purchased and transferred from the seller to the buyer.

UCC's Provisions

Regulations and rules established under the Uniform Commercial Code, governing commercial transactions in the United States.

Passage of Title

The legal process or moment when ownership of property or assets is transferred from one party to another.