Stock Futures

BENEFITS

  • Opportunities for new investor strategies plus day trades.
  • Enables investors to use leverage to be positioned on stocks with smaller cash outlay
  • Facilitates hedge and arbitrage trades.
  • Facilitates pair trading.
  • Enables structured transactions with options. 

CONTRACT SPECIFICATIONS

Ticker

AAAAYZXX

Company code, tipo/classe do papel, contract month and contract year.

Examples:

PETRPM19: PETR4 (PN) Futures June 2019
VALEOU19: VALE3 (ON) Futures September 2019

Exemplos:
PETRPM19: Futuro de PETR4 (PN) junho/19
VALEOU19: Futuro de VALE3 (ON) setembro/19

Contract Size 1 share
Quotation In points, each point value = BRL 1.00
Tick Size 0.01
Round Lot 100 contracts
Expiration Monthly
Settlement Cash settlement

SELECTED STOCKS

Twelve stocks were selected to trade Single Stock Futures contracts 

Education Kroton – KROT3
Retail - Home Appliances Via Varejo – VVAR3
Energy Cemig – CMIG4
Highway Concession CCR – CCRO3
Finance

B3 – B3SA3    
Cielo – CIEL3  
Porto Seguro – PSSA3

Medicines Hypera Pharma – HYPE3
Mining Vale – VALE3
Oil, Gas and Fuels Petrobrás. – PETR4
Steel   Usiminas  – USIM5
Retail  Grupo Pão de Açúcar – PCAR4

TRADING STRATEGIES

Investor trades short

Allows selling a Single Stock Futures contract without the need to borrow the asset. The investor deposits only a percentage as collateral.

Leverage

Allows an investor to invest a larger sum than what is held in their account. The investor can use leverage to be positioned on stocks with smaller cash outlay and may or not benefit from fluctuation of the asset price.

For example, an investor wishing to buy stocks in the spot market will have to outlay the full asset value when trading. If the investor wants to buy stocks in the futures market, they will have to outlay only a percentage of the asset value.  This percentage is known as margin.

Hedge

A strategy aimed at mitigating or even eliminating the risk of other assets or a  trade.

For example, investors holding a stock portfolio with futures contracts may sell these contracts by locking in the asset price to avoid or limit losses. As a result, any losses on spot market trades will be offset by a profit in the futures market.

Cash & Carry

An arbitrage strategy whereby an investor compares stocks in the spot market and sells the contract in the futures market, seeking to gain profit from price differences in both markets. At the contract’s expiration, the investor's gain is defined as the difference between the amount received from selling stock futures short and the purchase price in the spot market, plus the carrying costs on both positions.

Pair Trading
Consists of trading two highly correlated assets, which are traded taking opposite positions, one long and one short, with the expectation that the long position will outperform the short position.