Trading Single Stock Futures
Looking to capitalize on price moves in leading companies? Single Stock Futures can provide a flexible way to trade, with nearly 24/5 market access and potentially greater capital efficiency.
Futures and futures options trading is provided by Charles Schwab Futures and Forex LLC.
What are Single Stock Futures?
Single Stock Futures are cash-settled futures contracts based on the underlying price movement of an individual company, like Tesla (TSLA) or Microsoft (MSFT), at a set future date. Each standard contract represents 100 shares of the underlying stock, giving you a streamlined way to gain exposure without the complexity of physical share delivery.
Traded on the Chicago Mercantile Exchange (CME), Single Stock Futures provide access to 50+ of the leading stocks in the S&P 500® and Nasdaq 100®.
Why trade Single Stock Futures?
Trade with less initial capital
Gain exposure to the price movement of specific stocks with less initial capital and establish a position with less upfront margin than buying the stock outright.
Get straightforward price exposure
Unlike typical stock options, Single Stock Futures are cash-settled, removing the need to manage actual shares for more operational efficiency.
React to news around the clock
Trade nearly 24/5 so you can respond to company news—especially during big events like earnings, when stocks have historically seen their biggest price moves.
Go long or short
Whether a company's stock price moves up or down, take a long or short position without stock borrow fees or short-sale restrictions.
Where to trade Single Stock Futures:
Single Stock Futures can be traded nearly 24 hours a day, 5 days a week, on the thinkorswim® trading platforms.
In addition, clients trading on thinkorswim also get access to market research, real-time Single Stock Futures quotes, specialized charting, and educational resources to support your trading.
Single Stock Futures contract specifications
Single Stock Futures contract specifications
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Single Stock Futures FAQs
- Get exposure to the price movement of specific stocks with less initial capital.
- Speculate on company news.
- Trade a derivative on a stock without some option-specific elements like time decay or Greeks.
- Trade nearly 24 hours a day, 5 days a week, which can be especially useful during earnings season when stocks often see their biggest moves.
Keep in mind that disciplined risk management is always essential and that futures are leveraged products, which can result in substantial losses with smaller price movements and can even be larger than your initial investment.
It is important to understand the benefits and risks involved with Single Stock Futures before placing a futures trade. With Single Stock Futures, you can trade nearly 24 hours a day, 5 days a week, and take advantage of potential trading opportunities regardless of market direction. Single Stock Futures also provide the ability to trade with greater leverage and can allow a more efficient use of trading capital.
However, trading leveraged products like Single Stock Futures is not suitable for all investors. It involves the risk that even small market movements can lead to substantial losses, including losses greater than your initial investment.
Single Stock Futures are cash-settled against the official closing prices at the respective primary listing exchange on the day of termination of trading.
Depending on the nature of the corporate action, different outcomes can occur. An even stock split could generally result in a transfer from the old number of contracts/price into the new number of contracts/price. In cases involving uneven splits, a synthetic futures contract may be created and available until expiration. Special dividends can generally result in an adjustment in the price of the settlement of the futures position.
Corporate actions may cause the underlying of a security futures contract to change over the contract duration. The terms of security futures contracts may also be adjusted to reflect other corporate events affecting the underlying security.
Ready to trade futures?
Not yet a Schwab client?
Open a brokerage account online, then go to the Getting Started page for next steps.
Already a client?
Use your eligible brokerage account to apply for a futures trading account.
