Concept

Single-stock futures

In finance, a single-stock future (SSF) is a type of futures contract between two parties to exchange a specified number of stocks in a company for a price agreed today (the futures price or the strike price) with delivery occurring at a specified future date, the delivery date. The contracts can be later traded on a futures exchange. The party agreeing to take delivery of the underlying stock in the future, the "buyer" of the contract, is said to be "long", and the party agreeing to deliver the stock in the future, the "seller" of the contract, is said to be "short". The terminology reflects the expectations of the parties - the buyer hopes or expects that the stock price is going to increase, while the seller hopes or expects that it will decrease. Because entering the contract itself costs nothing, the buy/sell terminology is a linguistic convenience reflecting the position each party is taking - long or short. SSFs are usually traded in increments/lots/batches of 100. When purchased, no transmission of share rights or dividends occurs. Being futures contracts they are traded on margin, thus offering leverage, and they are not subject to the short selling limitations that stocks are subjected to. They are traded in various financial markets, including those of the United States, United Kingdom, Spain, India and others. South Africa currently hosts the largest single-stock futures market in the world, trading on average 700,000 contracts daily. In the United States, they were disallowed from any exchange listing in the 1980s because the Commodity Futures Trading Commission and the U.S. Securities and Exchange Commission were unable to decide which would have the regulatory authority over these products. After the Commodity Futures Modernization Act of 2000 became law, the two agencies eventually agreed on a jurisdiction-sharing plan and SSF's began trading on November 8, 2002. Two new exchanges initially offered security futures products, including single-stock futures, although one of these exchanges has since closed.

Source officielle

https://en.wikipedia.org/wiki/Single-stock_futures

À propos de ce résultat

Cette page est générée automatiquement et peut contenir des informations qui ne sont pas correctes, complètes, à jour ou pertinentes par rapport à votre recherche. Il en va de même pour toutes les autres pages de ce site. Veillez à vérifier les informations auprès des sources officielles de l'EPFL.

Cours associés (4)

FIN-607: Empirical Asset Pricing

This class is designed to give you an understanding of the basics of empirical asset pricing. This means that we will learn how to test asset pricing models and apply them mostly to stock markets. We

FIN-404: Derivatives

This course provides a detailed presentation of the standard models for the valuation and hedging of derivatives products such as European options, American options, forward contracts, futures contrac

EE-570: Power system restructuring and deregulation

This course presents different types and mechanisms of electricity markets. It addresses in particular their impacts on power/distribution systems operation and consequently the appropriate strategies

Afficher plus

Séances de cours associées (8)

Equity Premium Puzzle

Explore le puzzle Equity Premium et ses implications macrofinancières.

Introduction aux dérivés

Couvre les bases des produits dérivés, y compris la couverture, l'effet de levier, les spreads, les paiements et les modèles de tarification des actifs sous-jacents.

Taux d'intérêt et contrats : taux à terme et taux à terme

Explique les CRF, les contrats à terme sur taux d'intérêt, l'évaluation des bénéfices et les contrats à terme en dollars.

Afficher plus

Publications associées (15)

Takeover Protections and Asset Prices

Erwan Morellec

We study the effects of takeover feasibility on asset prices and returns in a unified framework. We show theoretically that takeover protections increase equity risk, stock returns, and bond yields by removing a valuable put option to sell the firm, notabl ...

Informs2024

Machine Learning for Modeling Stock Returns

Teng Andrea Xu

Throughout history, the pace of knowledge and information sharing has evolved into an unthinkable speed and media. At the end of the XVII century, in Europe, the ideas that would shape the "Age of Enlightenment" were slowly being developed in coffeehouses, ...

EPFL2024

Financial Risk Management with Machine Learning

Marc-Aurèle Antoine Divernois

This thesis consists of three applications of machine learning techniques to risk management. The first chapter proposes a deep learning approach to estimate physical forward default intensities of companies. Default probabilities are computed using artifi ...

EPFL2022

Afficher plus

Source officielle

https://en.wikipedia.org/wiki/Single-stock_futures

À propos de ce résultat

Cours associés (4)

FIN-607: Empirical Asset Pricing

This class is designed to give you an understanding of the basics of empirical asset pricing. This means that we will learn how to test asset pricing models and apply them mostly to stock markets. We

FIN-404: Derivatives

EE-570: Power system restructuring and deregulation

Afficher plus

Séances de cours associées (8)

Equity Premium Puzzle

Explore le puzzle Equity Premium et ses implications macrofinancières.

Introduction aux dérivés

Couvre les bases des produits dérivés, y compris la couverture, l'effet de levier, les spreads, les paiements et les modèles de tarification des actifs sous-jacents.

Taux d'intérêt et contrats : taux à terme et taux à terme

Explique les CRF, les contrats à terme sur taux d'intérêt, l'évaluation des bénéfices et les contrats à terme en dollars.

Afficher plus

Publications associées (15)

Takeover Protections and Asset Prices

Erwan Morellec

Informs2024

Machine Learning for Modeling Stock Returns

Teng Andrea Xu

EPFL2024

Financial Risk Management with Machine Learning

Marc-Aurèle Antoine Divernois

EPFL2022

Afficher plus

Concepts associés (2)

Stock

Stock (also capital stock, or sometimes interchangeably, shares) consist of all the shares by which ownership of a corporation or company is divided. A single share of the stock means fractional ownership of the corporation in proportion to the total number of shares. This typically entitles the shareholder (stockholder) to that fraction of the company's earnings, proceeds from liquidation of assets (after discharge of all senior claims such as secured and unsecured debt), or voting power, often dividing these up in proportion to the amount of money each stockholder has invested.

Marché à terme

Un marché à terme, ou marché des contrats à terme, est un marché où l'engagement pris par le donneur d'ordre (qu'il s'agisse de vendre ou d'acheter) s'exécutera (produira tous ses effets) à une échéance dont la date, définitivement convenue par avance, se situe postérieurement à la date de l'engagement pris par le donneur d'ordre. Voir articles principaux : contrat à terme et dérivé Histoire des marchés à terme et bourses de commerce L'un des premiers marchés à terme est rapporté par l'encyclopédie de Diderot et d'Alembert (1751) sur la bourse de commerce d'Amsterdam.