Futures Calculator – Profit & Loss
Calculate profit and loss for futures contracts trading
How to Use
- Enter the contract size (e.g., 100 for mini contracts)
- Enter the number of contracts traded
- Input your entry and exit prices
- Add commission per contract if applicable
- Select position type (long or short)
- Click calculate to see your profit/loss results
What are Futures Contracts?
Futures contracts are standardized agreements to buy or sell a specific asset at a predetermined price on a future date. They are traded on exchanges and used by traders for speculation and hedging purposes.
Each futures contract has a specific contract size, which represents the amount of the underlying asset. For example, an E-mini S&P 500 futures contract has a multiplier of $50 per index point.
Long vs Short Positions
In futures trading, you can take two types of positions:
- Long Position (Buy): You profit when the price increases. Buy low, sell high.
- Short Position (Sell): You profit when the price decreases. Sell high, buy low.
How to Calculate Profit & Loss
The profit or loss from a futures trade is calculated using this formula:
P&L = (Exit Price - Entry Price) × Contract Size × Number of Contracts
For short positions, the formula is reversed: (Entry Price - Exit Price) × Contract Size × Number of Contracts
Don't forget to subtract commissions from your gross profit to get the net profit.
Risk Management Tips
- Always use stop-loss orders to limit potential losses
- Never risk more than 1-2% of your trading capital on a single trade
- Understand margin requirements and maintain adequate account balance
- Keep track of contract expiration dates
- Factor in commission costs when planning trades
- Practice with paper trading before using real money
- Stay informed about market news and economic events
Frequently Asked Questions
- What is contract size in futures trading?
- Contract size is the multiplier that determines how much profit or loss you make per point of price movement. For example, if the contract size is 100 and the price moves by $1, your profit or loss would be $100 per contract.
- What's the difference between long and short positions?
- A long position means you're buying with the expectation that prices will rise. A short position means you're selling with the expectation that prices will fall. In futures, you can open either position without owning the underlying asset.
- How are commissions calculated in futures trading?
- Commissions are typically charged per contract per side (round-turn). This calculator uses the total commission per contract, which should include both the entry and exit fees. Check with your broker for their specific commission structure.
- What is ROI in futures trading?
- Return on Investment (ROI) shows your profit or loss as a percentage of the initial margin required to open the position. It helps you evaluate the efficiency of your trade relative to the capital deployed.