Single Stock Futures

Single Stock Futures are derivative instruments that give investors exposure to price movements of an underlying financial instrument (shares). A futures contract is a legally binding agreement that gives the investor the right to buy or sell an underlying listed share at a fixed price on a future date.

Benefits

• Capital efficient way to participate in shares. SSFs are also liquid and easily traded.
• Incur lower brokerage fees than actually trading in the underlying shares
• Take advantage of price movements in the underlying share
• Provides an opportunity to protect and hedge your share portfolio
• Can be cash settled or physically settled
• Corporate actions are taken into account and independant valuations are done by the exchange.

Who should use this product?

• Hedgers seeking to reduce risk by protecting an existing share portfolio against adverse price movements in the physical (spot) market
• Speculators hoping to make a profit on short-term movements in the futures contract price
• Asset Managers and Hedge Fund Managers or Arbitrageurs
• Retail investors wanting to diversify or hedge their portfolios

How to use this product?

• Buy a future (go long) when you expect the share price to increase
• Sell a future (go short) when you expect the share price to decrease