A low risk way to earn a return on the cash balance in your brokerage account

Buying a stock and selling a corresponding single stock futures contract (SSF) can be a a low risk way to earn a better return on the cash balance in your brokerage account. To learn how, checkout Successful Portfolios handy EFP Return worksheet and give us a call at (727)744-3614.

Download the EFP Return Worksheet.

Are you an investor, like many others, earning a near zero return on your brokerage cash balance?  Do something about it!  We can teach you a safe, short-term investment alternative that pays a much higher rate than a money market fund or t-bill.  An EFP transaction typically has a duration of one to two months.  The counter-party to an EFP is the Options Clearing Corp, rated AA+ by Standard and Poor’s.

This link takes you to a concise overview on single stock futures (SSF) and exchange for physicals (EFP) at the Interactive Brokers website.  See screenshot below for a preview.

Investing brokerage cash balance short-term single stock futures

Security Futures are not suitable for all investors. The amount you may lose may be greater than your initial investment. Before trading security futures, please read the Security Futures Risk Disclosure Statement.

About the Author:

Parker Evans, CFA, CFP, CMT is President of Successful Portfolios LLC, an SEC Registered Investment Advisor Firm based in Clearwater, FL. Parker helps individuals, families, and organizations plan and manage custom investment portfolios at leading brokerages including Charles Schwab, TD Ameritrade, and Interactive Brokers.