Single stock futures are financial derivatives. This means single stock futures derive their value from an underlying share or index.
You can easily trade single stock futures through any stock broker offering futures trading.
So what exactly are single stock futures? And how do they work?
Let's take a closer look…
What are single stock futures?
Single stock futures are agreeme... ››› more
When it comes to trading, you can't get an older standardised financial derivative than futures.
They date back to Japan in the 18th century where rice traders used them to speculate on the price of rice.
Futures trading really took off in the mid-19th century when farmers and merchants used them in the US to trade agricultural commodities.
So what are single stock futures? And what are t... ››› more
If you want to start trading, single stock futures are one way to do it.
Single stock futures are derivative instruments that leverage the underlying move of a share. This leverage means you have the potential to make substantial gains on a tiny movement in a share price.
Not only that, you can also use single stock futures to benefit from a falling share price.
But what exactly are sing... ››› more
Once you've sorted out a futures broker to trade through, you're ready to start trading single stock futures. After conducting some research, you've decided on your first trade. So you phone up your broker to put the trade on. Before you can go ahead with your trade, you need to understand the bid price and offer price. And what difference this makes if you're going long or going short. Let's take... ››› more
You've done your research and have decided that you want to trade single stock futures. Before you can even think about putting a trade on, you need to have a trading account with a futures broker. If you already buy and sell shares through a stockbroker, there's a chance they may also provide this service. If not you're going to have to find one. Read on to find out how…
Trading futures w... ››› more
There are a number of different financial products out there to trade. If you opt to trade single stock futures, there are benefits. These benefits all relate to the futures contracts used when you trade futures. So what makes that advantageous? Let's take a closer look…
Futures contracts are interchangeable
Futures contracts are standardised. It’s this trait that makes them interchange... ››› more
Disclaimer Note that FSP Invest, a division of Fleet Street Publications (Pty) Ltd, is a research house and not a registered broker, financial advisor or financial service provider. Our editors and customer services teams also do not give personal investment advice. The advice in this website is general advice only and may not be appropriate to your particular investment objectives, financial situation or particular needs, so before investing or if in any doubt about your personal situation, you should seek professional advice from a stockbroker or independent financial adviser authorised by the Financial Services Board.
We research our recommendations and articles thoroughly, but disclaim all liability for any inaccuracies or omissions found in this publication.
Remember: Never invest more than you can afford to spare and that the value of any investment, and the income derived from it, can go down as well as up. The past is not necessarily a guide to future performance.
Editors or contributors may have an interest in investments commented on in this newsletter. However they have signed restraints to prevent the abuse of their position as contributors to this publication.