What are some of the advantages of trading single stock futures as opposed to stocks?
The ease of selling Single Stock Futures enables stock owners to protect their investment against temporary adverse price movement without having to sell their shares. In the case of short selling, futures margins tend to be more favorable and traders don’t have to secure an inventory of the stock they’re shorting. Furthermore, sellers needn’t wait for an uptick for their transactions to be executed. Also, SSFs will enable traders to attempt to profit from price fluctuations without having to buy or sell actual shares of stock. How are SSFs settled? SSFs in the U.S. require physical delivery of underlying shares. Where are SSFs traded? The Chicago Board Options Exchange (CBOE), the Chicago Mercantile Exchange (CME), and the Chicago Board of Trade (CBOT) have formed a joint venture to create a new electronic marketplace for the trading of SSFs. This joint venture is called OneChicago, LLC. The American Stock Exchange (AMEX) has announced its intention to list and trade SSFs. Island ECN,
