A cost-efficient way to access big cap Malaysian stocks

What is SSF?

A Single Stock Futures (SSF) is a type of futures contract that derives its value from an individual stock. Each SSF contract represents an agreement to buy or sell a specified number of the underlying stock at a predetermined price on a specified future date.

Unlike owning the actual stocks, holding SSF does not grant shareholder's rights, such as voting rights or entitlements to corporate actions like bonus issues, dividends, and rights issues, among others.

All SSF traded on Bursa Malaysia Derivatives are denominated in Ringgit Malaysia (MYR). Upon expiry, SSF are cash settled, which means there is no physical delivery of shares. In addition, the settlement is based on the price difference between the contract price and the final settlement price at expiry.

Why Trade SSF?

Take Advantage of Both Bull and Bear Markets

SSF allows traders to capitalise on both bullish and bearish market conditions. For example, traders can buy SSF at a lower price in an anticipation of a price increase or sell (short) SSF first and buy it back later when expecting a price decline in the underlying stock, without the need to borrow the underlying stocks.

Lower Capital and Enhanced Leverage

With SSF, traders may potentially gain exposure to certain stocks with a smaller upfront fee through the Initial Margin, which is only a fraction of the full value of the underlying stock.

This leverage allows for potential higher returns compared to traditional stock trading, though it is crucial to manage risk effectively to avoid significant financial impact.

Learn about the latest margin requirement for each SSF contract here.

Low Transaction Cost

Each SSF represents 100 units of the underlying stock, yet transaction costs are relatively lower than trading the equivalent stock position in the cash market.

Portfolio Hedging & Risk Management

Investors can manage their stock portfolio risks by taking an opposite position in SSF contracts. For example, investors holding a stock can hedge against any potential price decline in the specific stock by shorting an SSF over the same name, and vice versa.