Security Futures

In December 2000, Congress established a framework for joint regulation by the CFTC and the Securities and Exchange Commission (SEC) of the trading of futures on single securities and futures on narrow-based security indexes.

Frequently asked questions about security futures products (SFPs) and security futures training.

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Contracts are negotiated at futures exchanges, which act as a marketplace between buyers and sellers. The buyer of a contract is said to be long position holder, and the selling party is said to be short position holder.

I would assume that increases in any dividends would increase the price of the underlying security, therefore causing a relative increase to the security future price.

FINRA/NASAA Series 63 - Which Investments Are Not Securities? In this section Fixed Insurance, endowment or annuities policies, Retirement plans, Commodities or futures contracts and Condominiums.

A financial contract obligating the buyer to purchase an asset (or the seller to sell an asset), such as a physical commodity or a financial instrument, at a predetermined future date and price. Futures contracts detail the quality and quantity of the underlying asset; they are standardized to facilitate trading on a futures exchange.

What Is It? As the name implies, futures are contracts on commodities, currencies, and stock market indexes that attempt to predict the value of these securities at some date in the future. The popular perception of futures is that they are a form of very high risk speculation.

Learn more about trading Security Futures, and how Security Futures may fit into an investment strategy.

Security futures are among the potentially riskiest financial products available in the United States. Federal regulations permit trading in futures contracts on single stocks (also known as single stock futures or SSFs) and narrow-based security indices (see definition below).