The insurance company during that period of time will bear all the losses of the unfortunate traders using the money it has gathered from other participating traders in order to help the unfortunate traders. The purpose of insurance in a general term is mainly to help the unfortunate one by using some portion of the collected/pooled money to compensate whatever amount of loss to the victim. With this method, many of the unfortunate victims can carry on with their daily lives immediately without having to worry about other financial obligations.
Disclaimer:
The information in this publication is provided by www.shyamshare.blogspot.com is intended for use for Readers & Traders . Every effort is made to provide accurate information, but www.shyamshare.blogspot.com cannot guarantee the accuracy of the information or of the market analysis. This is a newsletter and is for informational purposes only. It is not a solicitation or offer to buy or sell futures. There is a high risk of loss in trading futures. You should not trade with money that you cannot afford to lose. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this newsletter. The past performance of any trading system or methodology is not necessarily indicative of future results.
