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How to open a trading account to trade single stock futures

by , 16 May 2014

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 with your existing stockbroker

If you already have an account with a stockbroker, they may also offer futures trading.

If this is the case you need to let your broker know you want to trade futures too. They’ll give you the necessary paperwork to complete so you can trade futures too.

If you don’t have a broker that can do this for you, you need to find one…

Finding a suitable futures broker

If you want to trade futures, then you need to open an account with a stockbroker who provides futures and derivatives trading.

To find a list of brokers, just visit the JSE’s website. You want to look at the list of equity derivatives members. From the list you can access the different member websites. Then you can do your research and decide on a few to look into further.

Brokers who trade futures will range from banks to stockbrokers and from institutions to corporations.

Before you open an account, check a few things out first:
  • Check what the minimum deposit amount is; and
  • Check what the rate of commission is too as this will vary.
Some brokers also might have a minimum amount of futures contracts that you can trade at once so check this out. If you only want to put on small trades, you don’t want a set minimum amount.

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Signing up for your futures trading account

Once you’ve decided on who you’re going to trade futures through, you need to sign the relevant paperwork and transfer some money for trading. By signing the paperwork, you agree to the risks associated with trading a geared product like futures.

So there you have it, how to open a trading account to trade single stock futures.

How to open a trading account to trade single stock futures
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