Single-Stock Futures on Eurex: A European Alternative to CFDs

Eurex single-stock futures provide leveraged, exchange-listed exposure to individual European and US stocks through a regulated, centrally-cleared instrument. They occupy a useful middle ground between cash equities (no leverage, no expiry mechanics) and CFDs (leveraged, OTC, ESMA-capped for retail). For institutional and active retail traders in Europe, Eurex single-stock futures are an underused but powerful tool. This guide covers the mechanics and the use cases.

What a single-stock future is

A single-stock future obligates buyer and seller to exchange a fixed number of shares of a specific company at a pre-agreed price on a future date. Unlike options (which grant the right but not the obligation), futures create symmetric exposure, full upside, full downside.

Eurex lists single-stock futures on:

• Most large-cap European stocks, DAX 40 names (SAP, Siemens, Allianz, Mercedes-Benz, etc.), CAC 40 names (LVMH, TotalEnergies, Sanofi, AXA), FTSE 100 names (Shell, AstraZeneca, HSBC, Unilever), other major European blue-chips.
• Many large-cap US stocks, AAPL, MSFT, AMZN, GOOGL, META, NVDA, TSLA, and others.

The contract represents 100 shares of the underlying (standard size for most listings). Some contracts have different sizes for high-priced underlyings.

Contract specifications

Generic single-stock futures specifications on Eurex:

• Contract size: Typically 100 shares of underlying.
• Quote: Currency of the underlying stock (EUR for European stocks, USD for US stocks listed as Eurex futures).
• Settlement: Physical delivery on most contracts (cash settlement on selected names).
• Expiries: Quarterly cycle (March, June, September, December) plus serial monthly contracts.
• Trading hours: Aligned with cash trading hours of the underlying, plus pre-market and post-market sessions.
• Initial margin: Calculated by Eurex margin methodology; varies by underlying volatility and notional. See Eurex margin requirements stocks for the practical mechanics.

Key advantages over CFDs

For European retail and institutional traders, single-stock futures offer several structural advantages over single-stock CFDs:

Central clearing

Eurex Clearing acts as central counterparty. Counterparty risk is concentrated on a regulated, capitalised clearinghouse rather than a bilateral broker. CFDs concentrate counterparty risk on the CFD broker.

No ESMA leverage cap

ESMA's CFD leverage caps for European retail (5x for major stocks, 2x for non-major stocks) do not apply to futures. Single-stock futures provide higher effective leverage to European retail accounts than CFDs on the same underlying.

No overnight financing

CFDs charge overnight financing on every day a position is held. Single-stock futures have no daily financing, financing cost is implicit in the futures basis (price difference between front and back contracts).

For longer holding periods (weeks to months), this difference matters substantially. A CFD position held for 6 months might accumulate 5-10% in financing costs; the equivalent futures position pays the implied financing only at roll, with much tighter all-in cost.

Tax treatment

In many European jurisdictions, futures gains are treated as capital gains rather than as income. The treatment differs from CFD treatment in some jurisdictions.

Standardised, transparent pricing

Single-stock futures trade on a transparent central order book. Bid-ask spreads, depth, and last trade are public. CFDs trade on broker-internal pricing with markup that varies by broker.

Disadvantages vs CFDs

Higher capital requirement

Initial margin on Eurex single-stock futures is typically larger than CFD margin (which can be as low as 5-10% of notional under the ESMA cap). For very small accounts, CFDs offer accessibility that single-stock futures may not.

Less flexibility on size

Each Eurex single-stock future represents 100 shares (standard). CFDs allow fractional sizing. For a small account looking to buy 30 shares of equivalent exposure, the CFD wins on flexibility.

Roll mechanics

Futures expire quarterly; positions need to be rolled. CFDs roll continuously with daily financing. For very long holding periods, the operational simplicity of CFDs is real (though the financing accumulates).

Liquidity in less-active names

Eurex single-stock futures have deep liquidity on the major DAX / CAC / FTSE 100 names. Mid-cap and smaller names have thinner order books than the equivalent CFDs offered by retail brokers.

Practical use cases

Institutional trading and hedging

Asset managers, hedge funds, and prop traders use Eurex single-stock futures for:

• Long or short exposure on individual European blue-chips.
• Pair trades (e.g., long Mercedes-Benz future, short BMW future).
• Hedging cash equity portfolios at the single-name level.
• Basket trades constructed from multiple single-stock futures.

Active retail trading

For European retail traders willing to handle quarterly roll mechanics, single-stock futures provide more cost-effective long-duration exposure than CFDs on the same underlying. The crossover holding period, where futures cost less than CFD, depends on broker-specific CFD financing rates and futures roll costs.

Synthetic positions

Combinations of single-stock futures with options on the same underlying can replicate complex payoffs. A long stock + short call (covered call) using futures + options achieves the same payoff as the cash equity equivalent, with more capital-efficient leverage.

Dividend capture

The single-stock future basis explicitly prices expected dividends between trade date and expiry. Comparing the implied dividend in the futures basis to actual expected dividends can identify mispricings, a niche but recurring institutional play.

Roll mechanics

Eurex single-stock futures roll on quarterly cycle. The roll typically completes during the week before the third Friday of the contract month. Position holders close the front contract and open the back contract; the basis between the two reflects:

• Implied dividends expected between front expiry and back expiry.
• Implied financing cost (cost of carry).

For most large-cap European stocks, the basis is small but matters for traders rolling large positions. Active managers reduce slippage by rolling early in the migration window before bid-ask spreads on the front contract widen.

Cost structure

Eurex exchange fees + broker commission. Interactive Brokers charges approximately €1-€2 per side for Eurex single-stock futures (rates published periodically). Specialist futures brokers may offer competitive rates for active traders.

CFD pricing is typically commission-free with cost embedded in the bid-ask spread plus daily financing. The all-in cost comparison depends heavily on holding period and broker-specific CFD spreads.

Access for non-European traders

• Interactive Brokers, direct Eurex access for global clients.
• Saxo Bank, Eurex single-stock futures on the multi-asset platform.
• Local European brokers with Eurex access, varies by jurisdiction.

For South African and Brazilian traders, Eurex single-stock futures are accessible primarily through international brokers (IBKR, Saxo) given limited regional Eurex membership.

Comparison summary

| Feature | Eurex single-stock future | Single-stock CFD | |---|---|---| | Trading model | Centralised exchange | Bilateral OTC | | Clearing | Eurex Clearing CCP | Bilateral broker | | Leverage (retail) | Higher (no ESMA cap) | ESMA-capped (5x for major stocks) | | Daily financing | None (basis only at roll) | Daily financing on overnight positions | | Position sizing | Fixed 100-share contracts | Fractional | | Tax treatment | Often capital gains | Varies by jurisdiction | | Liquidity (large names) | Deep | Deep | | Liquidity (mid/small names) | Thinner | Often deeper | | Counterparty risk | CCP | Broker |

For a fuller comparison see Eurex single-stock futures vs CFD.

Risks specific to Eurex single-stock futures

• Margin escalation in volatile regimes.
• Roll basis risk, basis can widen unexpectedly around earnings, dividends, or M&A events.
• Liquidity risk in less-active names, bid-ask spreads can be wider than retail expects.
• Assignment / delivery risk, physical-settled contracts require attention to first notice day.
• Currency risk for non-EUR accounts, PnL on EUR-denominated futures is in EUR.

Related reading

• Eurex margin requirements stocks, margin mechanics in detail.
• Eurex single-stock futures vs CFD, full comparison.
• Stock Derivatives pillar, the full landscape.