Last update August 12, 2013
Single Stock Futures are tradeable on IDEM (Italian Derivatives Market) of Borsa Italiana.
Trading an IDEM Stock Future contract on a stock is the equivalent of opening long or short position with margin, even overnight, on the corresponding stock. Stock Futures are traded on the IDEM market with the same logics and rules as the FIB and MiniFib future contracts, except for the fact that they mature quarterly and monthly (only the two closest expirations are available).
While Borsa Italiana allows the Physical Delivery of the underlying stocks on maturity, Directa does not allow it.
The open positions have to be liquidated within 1 hour from the market close on the penultimate day of trading before expiration; otherwise Directa will liquidate any open position on the market.
In order to open and maintain a position on IDEM Stock Futures requires a margin, as it happens in every derivatives market.
How does trading IDEM Single Stock Future work?
Trading with IDEM Stock Future makes it possible to exploit the rise or fall of the stock with leverage: for example, if a stock is priced 20, with 1,000 and a margin of 10%, I can buy or sell a total of 10,000 (because a Stock Future contract corresponds to 100 shares, I can buy or sell 5 contracts). A 3% variation in the stock price, as an effect of the 10% leverage, would bring a profit or loss of 30%.
To maintain margins and to liquidate positions, the same as for Fib and MiniFib future contracts applies. In the event of open positions simultaneously present on the Fib/MiniFib and Stock Future, Directa at discretion will choose which positions to liquidate in order to reach the optimal risk control.