Single Stock Futures

Single Stock Futures (SSF) is an agreement (contract) between two parties to sell or buy shares at a previously agreed price within a predetermined time period.

 

SSF agreements are divided into 2 (two) types, namely:
1.    Purchase Contract (Long): An agreement to buy shares at a certain price and time period. "LONG" Futures investors will gain profits if the spot price rises, because the investor has locked in a purchase price (matched price) which is lower than the market price (spot price) which is higher.
2.    Sell Contract (Short): An agreement to sell a share at a certain price and time period. "SHORT" Futures investors will gain profits if the spot price falls, because the investor has locked in a selling price (matched price) that is higher than the market price (spot price) which is lower.