Stock future - In agreement between a buyer and a seller to exchange an amount of cash at a fixed future date (the settlement date) that reflects the difference between the initial traded price and the price of the stock on the settlement date.For instance, buying one stock future contract of Vodafone at 230p represents 1,000 shares. If the shares are at 231p on the settlement date, the owner of the stock future would have made a profit of £10 (1,000 x 1p).The main feature of stock futures is "leverage". In the above example, it would cost £2,300 to buy 1,000 Vodafone shares, excluding commission and stamp duty. To get the same exposure, you"d only have to buy one stock future contract which might cost around £230.
Stock future : in agreement between a buyer and a seller to exchange an amount of cash at a fixed future date (the settlement date) that reflects the difference between the initial traded price and the price of the stock on the settlement date.for instance, buying one stock future contract of vodafone at 230p represents 1,000 shares. if the shares are at 231p on the settlement date, the owner of the stock future would have made a profit of £10 (1,000 x 1p).the main feature of stock futures is "leverage". in the above example, it would cost £2,300 to buy 1,000 vodafone shares, excluding commission and stamp duty. to get the same exposure, you"d only have to buy one stock future contract which might cost around £230.
Stock future