Fundamentals for trading SSFs
A major reason retail stock traders aren?t trading single stock futures is their unfamiliarity with the new products. But traders don?t have to go out and learn a whole new set of rules, in this case the old and trusted fundamentals of stocks apply. Many traders look at the market as a whole to see if trading is strong or weak and whether or not it is a good time to enter the market, and some traders study the market from a purely technical perspective ignoring the fundamental aspects. When it comes to trading specific stocks or products, like single stock futures (SSFs), that are futures on individual stocks and highly correlated to equities, a closer look at the fundamentals is more than just necessary. SSFs are futures contracts on individual stocks, and fundamental analysis is used to forecast future price movements of a market based on the underlying factors that contribute to the supply and demand for that specific asset, focusing on the fundamentals of stocks is a good place to start.