Who are expected to be the main traders of SSFs?
Virtually any investor can use Single Stock Futures; however, initial interest is expected to be from trading firms, fund managers and professional investors. Once these products are listed and traded on U.S., exchanges, interest among individual investors is expected to increase. How are SSFs useful to individual investors and traders? Single Stock Futures increase the range of investment opportunities offered to private investors by enabling them to participate in opportunities presented by price fluctuations. They can be traded at a fraction of the cost of buying or selling the shares outright. Accordingly, SSFs can be a useful alternative for anyone who trades other equity and derivative products. As with all investments, it is essential that participants understand the nature of these instruments and their inherent risks. How are prices of SSFs determined? The price of an SSF contract is equal to the cost of buying the shares and holding them until the expiration of the futures co
