Single Stock Futures are listed instruments that allow you to hedge your portfolio. Exploit market opportunities to maximise returns on your investment easily, and with minimum capital.
Single Stock Futures (SSFs) are powerful, Johannesburg Stock Exchange (JSE)-listed trading instruments that enable day traders to exploit any market movement – up or down – to maximise returns with a minimal capital outlay. Futures have three main uses: to hedge risk, to speculate and to invest in instruments not easily available for normal equity trading, like JSE indices, oil and gold.
Trading Single Stock Futures
An SSF contract holds the same value as 100 of its underlying shares (after accounting for dividends and interest). But you pay far less for the SSF than 100 shares would cost. This means that you get more market exposure than you're paying for.
- You must have enough money in your SSF trading account to cover the initial margin: a fixed rand amount per SSF contract, usually set at around 15% of the exposure value.The initial margin requirement is set by the JSE, and
may be adjusted from time to time. If the initial margin requirement on your
position increases, you will be asked to increase the initial margin in your SSF
- As an example: a R15 000 initial margin will buy SSF contracts with an exposure worth R100 000.
- A 'long' position involves buying SSFs to sell at a later stage, if you think share prices will rise.
- A 'short' position involves selling SSFs to buy back at a later stage, if you think share prices will fall.
- Your initial margin is always kept separate and cannot be withdrawn from your SSF trading account.
- Your profit or losses are paid into or taken out of your SSF trading account daily. You can withdraw extra cash that becomes available when you make money, but will have to deposit more cash to avoid a negative balance if you lose money.
List of available Single Stock Futures contracts
Click here to view the list of available SSFs and their margin requirements.
Many SSF traders have found attractive trading opportunities, especially in falling markets. However, SSF trading involves the risk of a loss that can exceed your initial investment. SSFs might not be suitable for all investors. This will largely depend on your risk appetite.
Get the Single Stock Futures Key Information Document.
It is advisable to educate yourself about these investment instruments and the principles of trading. You can start by watching our
tutorials, or can consider our seminars and webinars
For more information and how to invest or visit our FAQ page.
Start exploiting market opportunities today and register for an online trading account.