Single Stock Futures
SSF are futures contracts that allow investors/traders to take advantage when the market goes up or down. Investors/Traders can either ‘Buy Low, Sell High’ when it’s a bull market or ‘Sell High, Buy Low’ when the bear market is expected.
For full list of tradeable SSF Click Here
For full information on SSF CLICK HERE
Take Advantage of Bull and Bear Markets
Not only can a trader “Buy Low, Sell High” when a bull market is anticipated, he can also “Sell High, Buy Low” if a bear market is expected by selling SSFs without having to borrow shares.
Low Capital Requirement
The margin required to start trading is only a fraction of the value of the underlying stock, therefore trading activities can be carried out with a smaller capital.
Low Trading Cost
The value of SSF contracts is based on the value of 1,000 units of single shares. The SSF transaction costs are low relative to purchasing or selling the total underlying stocks.
Enhanced trading strategies
SSF provides opportunity to protect/hedge your stocks portfolio with the same underlying stocks.
How To Trade in
Bull Market
“Buy Low, Sell High”.
When SSF price is forecasted to go up
How To Trade in
Bear Market
“Sell High, Buy Low”.
When the SSF price is forecasted to go down
Company Lembu & Co recently announced a positive net profit at the end of 2nd quarter this year.
Thus, Lembu & Co stocks which has a MYR3.00 value is expected to rise due to the positive sentiment.
Company Beruang Brothers recently announced a negative net loss at the end of 3rd quarter this year.
Thus, Beruang Brothers stocks which has a MYR4.00 value is expected to decline due to the negative sentiment.
Lembu & Co stock is forecasted to rise due to the positive net profit announced at the end of 2nd quarter.
Value of Lembu & Co stock during the announcement is MYR3.00.
MYR3.00 x 1,000 units of shares (1 lot of SSF) = MYR3,000
1 lot of SSF = 1,000 unit of shares.
Beruang Brothers stock is forecasted to fall due to the negative net profit announced at the end of 3rd quarter.
Value of Beruang Brothers stock during the announcement is MYR4.00.
MYR4.00 x 1,000 units of shares (1 lot of SSF) = MYR4,000
1 lot of SSF = 1,000 unit of shares.
Assuming the initial margin required for Lembu & Co stock is 10% of total amount.
MYR3,000 x 10% = MYR 300 (Entry Cost/Initial Margin)
Assuming the initial margin required for Beruang Brothers stock is 10% of total amount.
MYR4,000 x 10% = MYR 400 (Entry Cost/Initial Margin)
What do you do?
Buy 1 lot of SSF Lembu & Co contract at MYR3.00 because it is forecasted to rise to MYR3.50.
What do you do?
Sell 1 lot of SSF Beruang Brothers contract at MYR4.00 because it is forecasted to fall to MYR3.40.
Sell 1 lot of SSF Lembu & Co contract after the price has risen to MYR3.50 to close the position.
Buy 1 lot of SSF Beruang Brothers contract after the price has fallen to MYR3.40 to close the position.
What is Your Profit?
1 lot SSF contract equivalent to 1,000 unit of shares.
MYR3.50 (sell price) - MYR3.00 (buy price) = MYR0.50 (Profit)
MYR0.50 x 1,000 unit = MYR500
What is Your Profit?
1 lot SSF contract equivalent to 1,000 unit of shares.
MYR4.00 (sell high) – MYR3.40 (buy low) = MYR0.60 (profit)
MYR0.60 x 1,000 unit = MYR600
Returns are Boosted
MYR500
(Profit)
MYR300
(Initial Margin)
167%
(Rate of Return)
Returns are Boosted
MYR600
(Profit)
MYR400
(Initial Margin)
150%
(Rate of Return)
How To Trade in
Bull Market
“Buy Low, Sell High”.
When SSF price is forecasted to go up
How To Trade in
Bear Market
“Sell High, Buy Low”.
When the SSF price is forecasted to go down
Company Lembu & Co recently announced a positive net profit at the end of 2nd quarter this year.
Thus, Lembu & Co stocks which has a MYR3.00 value is expected to rise due to the positive sentiment.
Company Beruang Brothers recently announced a negative net loss at the end of 3rd quarter this year.
Thus, Beruang Brothers stocks which has a MYR4.00 value is expected to decline due to the negative sentiment.
Lembu & Co stock is forecasted to rise due to the positive net profit announced at the end of 2nd quarter.
Value of Lembu & Co stock during the announcement is MYR3.00.
MYR3.00 x 1,000 units of shares (1 lot of SSF) = MYR3,000
1 lot of SSF = 1,000 unit of shares.
Beruang Brothers stock is forecasted to fall due to the negative net profit announced at the end of 3rd quarter.
Value of Beruang Brothers stock during the announcement is MYR4.00.
MYR4.00 x 1,000 units of shares (1 lot of SSF) = MYR4,000
1 lot of SSF = 1,000 unit of shares.
Assuming the initial margin required for Lembu & Co stock is 10% of total amount.
MYR3,000 x 10% = MYR 300 (Entry Cost/Initial Margin)
Assuming the initial margin required for Beruang Brothers stock is 10% of total amount.
MYR4,000 x 10% = MYR 400 (Entry Cost/Initial Margin)
What do you do?
Buy 1 lot of SSF Lembu & Co contract at MYR3.00 because it is forecasted to rise to MYR3.50.
What do you do?
Sell 1 lot of SSF Beruang Brothers contract at MYR4.00 because it is forecasted to fall to MYR3.40.
Sell 1 lot of SSF Lembu & Co contract after the price has risen to MYR3.50 to close the position.
Buy 1 lot of SSF Beruang Brothers contract after the price has fallen to MYR3.40 to close the position.
What is Your Profit?
1 lot SSF contract equivalent to 1,000 unit of shares.
MYR3.50 (sell price) - MYR3.00 (buy price) = MYR0.50 (Profit)
MYR0.50 x 1,000 unit = MYR500
What is Your Profit?
1 lot SSF contract equivalent to 1,000 unit of shares.
MYR4.00 (sell high) – MYR3.40 (buy low) = MYR0.60 (profit)
MYR0.60 x 1,000 unit = MYR600
Returns are Boosted
MYR500
(Profit)
MYR300
(Initial Margin)
167%
(Rate of Return)
Returns are Boosted
MYR600
(Profit)
MYR400
(Initial Margin)
150%
(Rate of Return)
You can trade SSFs through a Bursa Malaysia Derivatives
futures broker by opening a futures trading account.
A broker will contact you within 7 working days to arrange an appointment. Once account is opened, your broker will hand-hold and guide you to place your first trade in the futures market.
Thank you for your feedback.
A broker will contact you within 7 working days to arrange an appointment. Once account is opened, your broker will hand-hold and guide you to place your first trade in the futures market.
How to Trade in Bull Market - Scenario ONE
How to Trade in Bear Market - Scenario TWO