Single Stock Futures anyone?

[clylbw]

Hi,

Are there individual traders trading Single Stock Futures (SSFs) at the moment?

Having been used to index futures, I find stocks' gearing and no-shorting-without-uptick restrictions less efficient, but there are indeed good runs in that area. Since I do not trade options, SSFs seem a new way of profiting from stocks.

I suppose the main attractions are the 20% gearing and the availability to short anytime. However, is there enough liquidity in SSFs, apart from the most popular ones? What is the slippage like? Is there a minimum capital requirement?

For most of their part, are SSFs traded primarily intraday, or are they also used in swing positions?

Many thanks indeed.

 

[clylbw]

Oh dear, apparently I have picked another unpopular topic.

Do people consider SSFs inferior to other instruments in some ways, or do they simply not bother?

 

[eirez]

I traded New Mont Mining for a couple of days and slippage was minimal. If you stick to big issues you won't have many problems. I would recommend one thing - keep your volatility stops a little looser than usual - I go stopped out with zero profit on a 15 minute intraday move and lost a cool profit.

I prefer SSF's to options on SSF stocks as they are more liquid and have smaller spreads. Just my opinion.

 

[rog1111]

Spreads are high and liquidity low, but may be good potential for the future

rog1111

Oh dear, apparently I have picked another unpopular topic.

Do people consider SSFs inferior to other instruments in some ways, or do they simply not bother?

 

[clylbw]

Thanks to both of you.

 

[tcksee]

A good course on ssts is free at www.21stcenturyinvestoreducation.com if you dont
already know