1. What is the Futures Profit Calculator?

The Futures Profit Calculator helps traders estimate their profit or loss from futures contracts based on entry and exit prices, contract size, and contract multiplier.

2. How Does the Calculator Work?

The calculator uses the futures profit formula:

Where:

• \( Entry \) — Entry price per contract (USD)
• \( Exit \) — Exit price per contract (USD)
• \( Size \) — Number of contracts
• \( Multiplier \) — Contract multiplier (unitless)

Explanation: The formula calculates the profit by multiplying the price difference by the number of contracts and the contract's multiplier value.

3. Importance of Futures Profit Calculation

Details: Accurate profit calculation is crucial for risk management, position sizing, and evaluating trading strategy performance in futures markets.

4. Using the Calculator

Tips: Enter entry and exit prices in USD, number of contracts, and contract multiplier. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What does a negative profit value mean?
A: A negative value indicates a loss on the trade.

Q2: How do I find the contract multiplier?
A: The multiplier is specified in the contract specifications from your futures exchange or broker.

Q3: Does this account for commissions and fees?
A: No, this calculates gross profit. Subtract commissions and fees for net profit.

Q4: Can this be used for short positions?
A: Yes, the calculation works the same way - just ensure you subtract exit from entry for short positions.

Q5: What about currency conversions?
A: This assumes all values are in the same currency (USD). For other currencies, convert to USD first.