How is a Single Stock Futures contract different from an equity option contract?
When you buy or sell a single-stock futures contract, you are obligated to fulfill the terms of the contract upon its expiration (unless you offset the position before then). When you buy an equity option contract, you have the right, but not the obligation, to either buy or sell 100 shares of the underlying stock at the option’s strike price by the time the contract expires. When you sell an equity option contract, you are obligated to either buy or sell 100 shares of the underlying stock at the option’s strike price at contract expiration. Customers wishing to trade Narrow Based Indexes and Single Stock Futures Products, should contact United Futures Trading, 1-800-840-5617 to obtain a copy of the required Security Futures Product’s Risk Disclosure Statement. You may also down load the required risk disclosure statement from stock_futures_disclosure.pdf. Narrow Based Indexes and Security Futures Products are not suitable for all investors. The risk of loss associated with these produ
