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Product Benefits

Advantages of Single Stock Futures

With margin requirements of 20%, Single Stock Futures provide a highly capital efficient way to participate in equities.
No uptick is required to establish a short position.
Short sellers may benefit from eliminating the costs and inefficiencies associated with the stock loan process.

Advantages of Narrow-Based Indices
Using these indices, investors can take a long or short position in a concentrated basket of stocks without incurring multiple transaction fees. This structure allows difficult-to-execute or advanced investing strategies such as spread trading or sector rotation to be executed swiftly and cost efficiently, as narrow-based indices are also subject to a margin requirement of 20% of the cash value of the contract.

Range of Trading Strategies
Single stock futures are used with a broad range of trading strategies and can be applied to a variety of portfolio management needs. Since the price of an equity future typically tracks the price of the underlying instrument nearly tick for tick, trading strategies used in the stock market today should be transferable to the stock futures market.

Electronic Trading
Security futures trading at OneChicago is fully electronic. Trade processing and clearing are fully automated using state of the art technology.

Choice of Brokers and Accounts
Single stock futures and narrow-based indices may be traded in either a securities account or a futures account. Many investors will be able to trade OneChicago products on their PCs through their existing securities or futures brokerage accounts.

You should be aware that trading futures involves the risk of loss, including the possibility of loss greater than your initial investment. Stock futures may not be suitable for all investors. Consult your broker or financial advisor before trading.

Related Information

Contact us for more information or call us : 1-800-542-1022
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