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Online Share Trading

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Single Stock Futures

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Quakedog
Super Contributor
If I buy any amount of contracts in any firm and lets say it goes up and down over the years and eventually after 5 years the underlying share went up. is it wise to hold single stock futures for a long time like you would the underlying stock? Or is there an interest cost which will hammer your profits? thanks
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4 REPLIES 4
Werner_1
Super Contributor
SSF contracts are time-based, so they expire with relatively short times for a 5 year investments, however, you can rollover, but it is my understanding that you will pay a brokerage cost each time it rolls over, which for a 5 year time, could be approx. 10 times.
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asylum
Super Contributor
well every time the contract it rolled over it cost you 0.4% so yes if you times that by 4 = 1.6% per year and over 5 years = 8%
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SimonPB
Valued Contributor
and then there is also the interest cost on the 'borrowed' portion.
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louisg
Super Contributor
And possibly income tax every time you roll it over.
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