A New Way to Trade Stocks: Understanding CME Single Stock Futures

The futures markets just became a little more interesting.

On July 27, 2026, the Chicago Mercantile Exchange (CME) began offering Single Stock Futures, commonly called SSFs. These new contracts allow traders to trade the price movement of individual companies through the futures market.

At launch, the CME listed futures on 55 leading U.S. stocks. It also introduced smaller Micro contracts on 22 of those stocks. The list includes several well-known companies, such as Apple, Amazon, Alphabet, Meta, Microsoft, Nvidia, Tesla and others.

For futures traders, this opens the door to a new group of markets. Instead of trading an index such as the S&P 500 or Nasdaq-100, we can now focus on the price movement of one company.

But what exactly is a Single Stock Future, and how does it work?

What Is a Single Stock Future?

A Single Stock Future is a futures contract based on the stock of one company.

For example, an Amazon Single Stock Future follows the price of Amazon stock. A Tesla Single Stock Future follows the price of Tesla stock.

However, buying one of these contracts is not the same as buying shares of the company.

When you buy stock, you own part of that company. You may receive dividends, and you may have voting rights.

When you trade an SSF, you do not own the stock. You are trading a contract whose value moves with the price of the stock.

The goal is to profit from whether the stock moves higher or lower.

A trader who believes the stock price will rise can buy, or go long, the futures contract. A trader who believes the stock will fall can sell, or go short, the contract.

This is similar to the way we already trade futures on commodities, interest rates and stock indexes.

How Large Is an SSF Contract?

CME offers two contract sizes.

The larger Single Stock Futures contract represents 100 shares of the underlying stock. The smaller Micro Single Stock Futures contract represents 10 shares.

Suppose a stock is trading at $200.

A larger contract would have a total value of:

100 shares × $200 = $20,000

A Micro contract would have a total value of:

10 shares × $200 = $2,000

This total value is called the contract’s notional value. It tells us how much stock market exposure the contract represents.

The Micro contracts may be especially useful for individual traders because they allow smaller positions and more control over risk.

However, be aware that Micro contracts are not available on every stock in the CME lineup. So far, the CME offered 55 larger contracts and 22 Micro contracts.

How Much Does Each Price Move Matter?

The value of each move depends on the contract size.

For a larger SSF representing 100 shares, a one-cent move in the stock equals $1.

A $1 move would equal $100.

For a Micro contract representing 10 shares, a one-cent move equals 10 cents.

A $1 move would equal $10.

Here's a simple example.

Suppose a trader buys one Micro SSF at $200. The price later rises to $205.

The stock moved $5 per share. Because the Micro contract represents 10 shares, the gain would be:

$5 × 10 shares = $50

If the price fell from $200 to $195, the loss would be $50.

For the larger 100-share contract, the same $5 move would create a gain or loss of $500.

This is why contract size matters. A market may look affordable based on the margin required, but as a trader you're still responsible for the price movement of the full contract.

You Do Not Pay the Full Contract Value

Like other futures, SSFs are traded using margin.

Margin is the amount of money that must be available in the account to hold the position. It is not a down payment, and it does not limit how much a trader can lose.

Federal rules require the margin for a long or short SSF position to be at least 15% of the contract’s current value, although CME or the broker can require more.

Suppose the notional value of a contract is $20,000. A 15% margin requirement would equal $3,000.

This allows the trader to control $20,000 worth of market exposure with less money in the account.

That may sound attractive, but it also creates leverage.

Leverage can increase profits when the market moves in the expected direction. It can also increase losses when the market moves the wrong way.

That said, a trade should never be chosen simply because the margin appears low. The trade should be based on a setup that meets your required criteria and on the dollar risk between the entry price and the protective stop.

Going Short May Be Simpler

One possible benefit of SSFs is the ability to trade in either direction.

Selling a stock short can sometimes involve borrowing shares, paying borrowing costs or dealing with short-sale restrictions.

With an SSF, a trader can normally open a bearish position by selling the futures contract. There is no need to first own the contract or borrow shares of stock.

If the price falls, the short position may gain value. If the price rises, the position loses value.

Of course, short positions carry serious risk. A stock can continue rising much farther than expected, so protective stops and proper position sizing remain important.

Longer Trading Hours

Regular U.S. stocks normally trade during daytime market hours.

CME Single Stock Futures trade from 5:00 p.m. Central Time until 4:00 p.m. Central Time, Sunday through Friday. There is a daily one-hour maintenance break from 4:00 p.m. until 5:00 p.m. Central Time.

This nearly 24-hour schedule could allow traders to react to certain news and overseas market moves before the regular stock market opens.

However, overnight trading will likely have less volume and therefore wider bid-and-ask spreads. An SSF may follow a popular stock, but that does not guarantee that the futures contract itself will always have strong trading activity.

Because these are new contracts, I will be watching volume and open interest closely. Good liquidity can make it easier to enter and exit a position at a fair price.

What Happens at Expiration?

Single Stock Futures have expiration months, just like other futures contracts.

CME initially lists quarterly contracts for March, June, September and December. Two consecutive quarterly expiration months are available at one time.

These contracts are financially settled. That means traders do not receive or deliver shares of stock when the contract expires.

Instead, the position is settled in cash based on the official closing price of the underlying stock on expiration day. Trading ends at 4:00 p.m. Eastern Time on the third Friday of the contract month.

Most short-term traders will likely close or roll their positions before expiration, but it is still important to know which contract month is being traded and when it expires.

How Can Someone Trade SSFs?

Single Stock Futures must be traded through a broker that offers access to them.

Not every stockbroker or futures broker will support these contracts right away. SSFs are unusual because they are considered both securities and futures products. For that reason, they are jointly regulated by the Commodity Futures Trading Commission and the Securities and Exchange Commission.

Before trying to place a trade, contact your broker and ask:

• Does my account have access to CME Single Stock Futures?
• Which SSF contracts are available on my trading platform?
• What are the current margin requirements?
• What commissions and exchange fees will I pay?
• Does the broker offer both the regular and Micro contracts?

It is also important to make sure you are looking at the correct contract symbol. The futures symbol may not be the same as the familiar stock symbol.

Are SSFs Better Than Stocks or Options?

SSFs are not automatically better than stocks or stock options. They are simply another trading tool!

Compared with buying stock, SSFs may offer longer trading hours, easier short selling and more efficient use of account capital.

Compared with stock options, SSFs may be easier to understand because there is no strike price and no option premium losing value from time decay.

However, SSFs also involve leverage, margin requirements and expiration dates. Unlike an option buyer, whose risk is normally limited to the premium paid, an SSF trader can lose more than the amount originally deposited as margin.

Each product has strengths and weaknesses. The correct choice depends on the trader’s strategy, experience, account size and risk tolerance.

A Market Worth Watching

The arrival of CME Single Stock Futures gives futures traders another way to participate in the stock market.

We can now trade the price movement of an individual company while using a familiar futures-style contract. We can trade long or short, choose between larger and Micro contracts on certain stocks and access the market for nearly 24 hours a day.

Still, these contracts are brand new. Volume, open interest and bid-and-ask spreads will be important. I would not assume that every contract will immediately have enough liquidity for active trading.

For now, I plan to watch how these markets develop. I will pay special attention to the Micro contracts because their smaller size may make risk easier to control.

Single Stock Futures may become a useful bridge between the stock and futures markets. As always, the contract itself is only a tool. Long-term success will still depend on having a clear trading plan, controlling risk and staying disciplined.

— Jim Prince, CommodityTrends.com

Educational content only. Futures and options trading involves substantial risk of loss and is not suitable for every investor. Nothing here is a recommendation to buy or sell any contract. Past performance is not indicative of future results.