Schwab launches single stock futures trading on 50+ U.S. stocks

Charles Schwab has introduced Single Stock Futures trading on over 50 U.S. stocks through its thinkorswim platform, as per a recent announcement. These cash-settled contracts, listed on the Chicago Mercantile Exchange, enable investors to speculate on individual company prices at a predetermined future date via standard contracts representing 100 shares each.

James Kostulias, head of Charles Schwab's trading services, noted that these products currently account for roughly 75% of the company's futures trading volume, which amounts to $13.08 trillion in total client assets. Single Stock Futures allow for long or short positions without the need for stock borrow fees or short-sale restrictions, and they can be executed outside regular market hours.

However, these leveraged instruments carry significant risk, as they can result in losses surpassing the initial investment. Futures accounts are not insured by the Securities Investor Protection Corporation, and Charles Schwab Futures and Forex LLC is registered with the Commodity Futures Trading Commission.