Any trader who thought it was going to narrow could use futures or options to place that bet now.

Price limits force people using futures and options as substitutes for buying or selling shares to return to the cash market.

Second, investors who have decided they wish to take an open position in the market index must choose between using shares or futures (Kawaller, 1987).

There are several advantages to using futures instead of actual stocks.

Managers can also use futures and options to hedge.

They can also use futures and options to hedge their positions.

So far, many institutions that use futures have shown little interest in the proposed basket.

They feel they are gambling if they do not use futures.

The same results can be achieved by using options and futures.

According to industry estimates, fewer than 10 percent of American farmers directly use futures.