‎Learn how to trade Single Stock Futures

‎Learn how to trade Single Stock Futures

Saudi Exchange (Tadawul) plans to launch Single Stock Futures (SSFs) contracts tomorrow, July 4.

SSFs are agreements between a buyer and seller who are obliged to complete a transaction at a predetermined future date. These contracts are valued at the underlying asset (the company's stock) and are settled in cash.

The first tranche of SSFs contracts to be launched includes the following Tadawul-listed companies: Al Rajhi Bank, Saudi Aramco, Saudi National Bank (SNB), Alinma Bank, Saudi Basic Industries Corp. (SABIC), stc, Saudi Kayan, Saudi Electricity Co., Almarai Co. and Saudi Arabian Mining Co. (Maaden).

Tadawul focused on the largest companies in the Kingdom by market cap that garner local and international interest, along with other considerations, to ensure a fair and orderly market.

Below are illustrative examples of trading SSFs:

*The value of one of ABC Company's SSF equals: SSF multiplier of 100 * SSF price of SAR 25 per share = SAR 2,500

**Initial Margin (20%) is SAR 500