Single Stock Futures

Single Stock Futures are agreement between 2 parties (buyer and seller) with stock as underlying.

Why Block Trade?

1. When liquidity of Single Stock Futures are low

2. Allowed buying and selling in bigger quantities at agreed prices 

3. Utilize the leverage of futures in increasing the return.

Benefits of using Block Trade in Single Stock Futures

• Increase the purchasing power of investors since only 10-15% of contract value is required as margin

• Help to increase liquidity of Single Stock Futures.

• Offer higher return when compared to trading stocks since the collateral requirement is lower

Remark

• Allowed investors to open position in both Long and short

• 3 days of minimum interest to be charged

• For those underlying stocks which pay dividend before the maturity of the contracts, clients who are holding long position will receive dividend (at 90% of dividend amount) when close position or when contract is expired while clients who are holding short position will be paying 100% of dividend amount.

• For other corporate actions, contract size and contracted price will be adjusted according the TFEX’s announcement.
  
  Summary of Single Stock Futures Contract Specification
  
  Initial margin rate