Single stock futures - Interactive Brokers

More documents

Recommendations

Info

The Power and Risk of Leverage• Capital-efficient instruments with performance bondrequirement of 20% (5:1 leverage)‣ at $80/share, trade equivalent of 100 shares of IBMwith $1,600 performance bond‣ at $25/share, trade equivalent of 100 shares of MSFTwith $500 performance bond‣ same performance bond requirement long or short• Access to open trade equity: Access to excess cash if yourposition moves favorably; contribute additional cash if theposition moves unfavorably.• Leverage provides capital efficiency. It also increasespotential risk, which may not be suitable for allinvestors. You should consult your financial advisor beforeusing security futures to engage in leveraged transactionssuch as those described in this presentation
Comparing the DifferenceFunding RequirementsSingle Stock FutureDeep in the Money Call Option(DITMC)25% 100%$75 SSF @ 25%= $18750.0075$ stockDeep in the money callStrike $55= $20.00Funding requirement on$20 Call = $20,000.00
Page 1 and 2: Welcome to OneChicagoComparingSingl
Page 3 and 4: Single Stock Futures• Security fu
Page 5 and 6: Single Stock Futures (SSFs) are an
Page 10 and 11: Comparing the Difference continuedT
Page 12: ©2009 OneChicago LLC. All rights r

Single stock futures - Interactive Brokers

Create successful ePaper yourself

Delete template?

Save as template?