Single stock futures contract is a standard futures contract with an individual stock as its underlying security.
In this specific case, only cash setlled.
- Investing with low capital: To operate single stock futures, it's not necessary to have the value of the asset, only the margin of guarantee
- Leverage: an investor can use leverage to control more stock with a smaller cash outlay
- Hedge: an investor can use single stock futures to hedge a cash market porfolio
- Opportunities of new strategies: day-trade and arbitrage
- Enables structured transactions with options