CME Revives Single-Stock Futures Amid Shift to Leveraged Trading
The Chicago Mercantile Exchange (CME) has relaunched single-stock futures, allowing traders to bet on the price of individual companies like Apple, Amazon, and Nvidia.
This is a major milestone for the financial market, but it's not the first time single-stock futures have been attempted in the US. The product was initially launched in 2002 by OneChicago, which operated until 2020.
However, this new launch comes at a time when the trading landscape has changed significantly. With the rise of commission-free platforms and social media, investors are increasingly comfortable with taking on directional leverage and margin-backed exposure.
CME's standard contracts represent 100 shares, while its Micro contracts represent 10. At a futures price of $200, the standard version controls $20,000 of exposure, and the Micro controls $2,000.