How single stock futures work
A single stock future is a contract to buy or sell a specific stock at a set price on a future date. Both sides are obligated to settle the trade, which sets it apart from an option — the option buyer can walk away, but a futures contract binds both parties. That obligation is the key difference.
For traders, the contract works like a bet on where a stock is headed. If you think a company's shares will rise, you can buy a future and lock in today's price. If the stock climbs, you profit on the difference when the contract settles. If it falls, you absorb the loss. The same logic runs in reverse for a short position.
What the launch means for Schwab
The move pushes Schwab deeper into derivatives. The firm already offers options and index futures, and single stock futures add a more targeted tool to that menu. For active traders, the appeal is precision: a contract
