single stock future

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Single Stock Future

A derivative in which the buyer and seller agree to exchange one stock at a certain price at a certain time. Single stock futures are bought on margin and, because they are futures and not actual stock, one may short sell single stock futures without being subject to the downtick rule. Single stock futures are usually traded in lots of 100 at a time. South Africa contains the largest market for single stock futures, though they are traded worldwide. In the United States, they are usually traded on OneChicago LLC. See also: Commodity Futures Modernization Act of 2000.

single stock future

A contract in which opposite parties agree to buy and sell a stock at a set price on a certain date. Unlike a stock option in which the owner of the option has a right to either buy (call) or sell (put), both parties in a single stock future contract have an obligation. Trading in single stock futures was pioneered in Europe on the London International Financial Futures and Options Exchange and was banned in the United States until repeal of the Shad-Johnson Accord in 2000. See also Nasdaq Liffe Markets, OneChicago LLC.
References in periodicals archive ?
Though in case of our study this doesn't seem plausible as the Indian single stock futures are not deliverable contracts, rather they are cash settled either at before the expiry.
The launch of Single Stock Futures Market has been accomplished following the recent introduction of the new Futures Trading System (SAMA), designed specifically for the Futures Market of Iran by the IT department of Tehran Stock Exchange with cooperation of Iran Mercantile Exchange.
This study presents fresh evidence on the futures trading-volatility relationship in Pakistan's equity market using the most recent data of the single stock futures contracts introduced on the Karachi Stock Exchange.
The evolution of single stock futures trading in the United States is similar to the beginning of a number of other new derivatives, alternative risk transfer instruments, exchange-traded funds, and variants of tax-deductible equity.
Similar to single stock futures, these contracts should appeal largely to traders and market timers looking for high leverage and relatively low costs for their transactions.
It is being launched ahead of regulatory changes later this year which will see for the first time US investors able to trade single stock futures.
Options, Futures, and Single Stock Futures involve substantial risk and are not suitable for all investors.
The creation of index products is the latest expansion of Nasdaq Dubais futures market, which opened in September 2016 with single stock futures on leading UAE-listed companies.
The main drivers of this strong trading month were the Indian Rupee, G6 currency pairs and the Indian Single Stock Futures (SSF) with the BSE Sensex Futures.
Summary: Main drivers of strong trading month were Indian Rupee, G6 currency pair, Indian Single Stock Futures with BSE Sensex Future
Nasdaq Dubai, the region's international stock exchange, will launch single stock futures on GFH Financial Group (GFH) starting from January 16, to enable investors to take positions on movements in the share price of the Bahrain-based company.
The addition of the two companies is the latest expansion of Nasdaq Dubai's derivatives market, which from Wednesday will comprise single stock futures on 16 UAE-listed companies after opening with seven in September 2016.

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