Thursday, July 23, 2009

What are the advantages of single stock futures?.

There are three significant advantages:.

  • With margin requirements of 20%, single stock futures provide a highly capital efficient way to participate in equities.
  • No uptick is required to establish a short position.
  • Market participants initiating a short position should benefit from eliminating the costs and inefficiencies associated with the stock loan process.

Trading futures involves the risk of loss. This includes the possibility of loss greater than your initial investment. Stock futures may not be suitable for all investors. Consult your broker or financial advisor before trading..

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