Talk About Investing: Single Stock Futures

Single Stock Futures (SSF) to enable investors to profit from bull and bear markets and protection against some of the lowest in its portfolio.

At SSF futures traded on individual stocks. Armed with a SSF handles the sale of purchase of the underlying stock at the end of his contract at an agreed price. Before being allowed to trade SSF, investors should maintain cash reserves in a trading account which is equivalent to 10% – 25% of the underlying asset. The margin requirement to negotiate a low SSF offers the opportunity for an investor to exchange the same number of shares that the investor is traditional, but less than one fifth of the cost compared to the stock of margin, which requires less money to trade SSF.

Therefore, the SSF release more resources for investment. Many market participants that trade SSF are simple. Buy or going “long” in an SSF if you expect the price of their participation in the fund appreciates. If the price goes down, then sell or “short” of the SSF.
The “up tick” rule allows investors to short circuit if the movement of stock prices in the past is “up”. Keep in mind, make a SSF trade is a purchase and sale transaction.