Single Stock Futures (SSF)
Stock Futures are futures contracts on
individual stocks or Exchange Traded Funds (ETFs). OneChicago lists
futures on more than 450 well-known stocks such as IBM, Qualcomm and
Microsoft.
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more information about OneChicago
In late 2000, the U.S. Congress passed legislation
lifting the ban on these products, which were already trading in Europe and
elsewhere. These products are now trading in the U.S. and represent
an important new tool for professional traders. Security futures
enable money managers, proprietary trading operations and other
investors to efficiently execute a variety of trading strategies for
U.S. listed equities.
A single stock futures contract is an agreement for delivery of
shares of the underlying security or ETF at a designated date in the
future, called the expiration date. The standard size
of a OneChicago single stock futures contract is 100 shares of the
underlying stock.
When a security future is traded,
both the buyer and seller put up a good faith deposit called margin.
Margin requirements are generally 20% of the cash value
of contract,
although this requirement may be lower if the investor also holds
certain offsetting positions in cash equities, stock options or
other security futures in the same securities account.
Narrow based index futures
Narrow based index futures are futures contracts on narrow
based equity indexes (small groups of stocks). OneChicago lists a
variety of "boutique" security indexes based on demand
from large institutional customers called OneChicago Select Indexes.
Each Select Index typically contains up to nine individual stocks
and
are cash settled. Select Indexes do not have an LMM assigned to
them to make
two-sided markets. At certain periods there may not be a bid and/or
ask
ETF futures
ETF futures are futures contracts on
Exchange Traded Funds. They have similar characteristics to single
stock futures, although the underlying security is the fund itself
rather than common stock in a specific company. Thus at
expiration, the deliverable assets are shares in the underlying ETF.
Single Stock Futures Learning
Center
Product
Benefits
Single
Stock Futures List
Narrow-Based
Index List ETF
Futures List
Security
Futures Pricing
Managing
Expiration Dates
Margin Requirements
Settlements
and Deliveries
Contract
Specifications
Trading
Strategies
Click below for more information on how to setup a Security Futures
Account
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