Although the inherent risks are different, there are several benefits of SSFs over taking similar market positions with shares of the underlying stock outright. Among them:

• Increased leverage (greater market exposure for smaller initial cash outlay)
• Reduced carrying costs (than stock ownership)
• Hedging opportunities
• Arbitrage opportunities
• Spreading opportunities
• Taking advantage of temporary market conditions without stock transaction costs
• No uptick rule or stock borrowing issues if wishing to “go short”
• No dividends owed on short positions (vs. a short stock position)
• Global investing can be much simpler (with listing of Single Stock Futures on foreign equities.

Note: Security futures products are not suitable for all investors. Futures trading involves substantial risk of financial loss and should be considered carefully before making any trades.