Single Stock and Units Futures Contract Structured Rollover Transaction

  • The product

    The Single Stock and Units Futures Contract Structured Rollover Transaction enables investors to hedge against unwanted price fluctuations, while limiting losses under adverse market conditions.

    Created with the purpose of facilitating investors' day-to-day operations, the structured rollover transaction does not consist of a new contract but rather a mechanism that allows to trade two maturities simultaneously, thus maintaining the features of the contracts unchanged.

    Typically, structured rollover transactions are carried out by investors wishing to migrate their positions to a longer maturity date due to, i.e., lack of liquidity in certain maturities. In addition, rollover transactions are also widely used by investors who wish to trade price differentials between maturities when they are seeking arbitrage between them, or even directional speculation.

     

  • Specifications
    UnderlyingStocks and Units
    TickerAAAAY – (AAAA) Company code, (Y) type/class of shares
    Contract size1 share
    QuotationIn points, each point value = BRL 1.00
    Tick sizeBRL 0.01
    Round-lot100 contracts
    Contract monthsAll months
    Settlement on expirationCash settlement
  • Benefits
    • Reduces risk by allowing trading in two different maturities in a single transaction.
    • Adds another price arbitrage tool between maturities.
    • Facilitates trading of price differential