400-240 Transfers on sale: equity futures contracts
An equity futures contract gives the holder the right and obligation to buy or sell an underlying security i.e. stocks and shares, at a given price per share (often referred to as the ‘strike’ price) at a future date that is agreed when the contract is made.
Equity futures contracts are exchange-regulated and listed on derivative investment exchanges, so they can be subject to secondary trading on or before settlement. Most equity futures contracts are settled for cash.