How does the Futures calculator work?

Our Futures Calculator empowers you to swiftly calculate the potential profit or loss on a futures trade. This user-friendly tool is designed to assist you in determining your potential gains or losses on a trade. Fill out the fields below and the system will calculate the potential pnl of your futures trade. 1. What are futures contracts?

What is the outstanding futures contract calculator?

The outstanding futures contract calculator helps you determine your profit or loss, whether you are long or short in the futures market. This article will cover what a futures contract is, how futures contracts work, and explore a real-life transaction. As a bonus, we'll compare forward vs. future contracts and futures contracts vs. options.

What are index futures?

Index futures are contracts to buy or sell a financial index at a set price today, to be settled at a date in the future. These contracts were originally meant solely for institutional investors but are now open to anyone. Portfolio managers use index futures to hedge their equity positions against a loss in stocks.

Are index futures a fail-safe predictor?

As such, there is no fail-safe predictor for the market, including index futures. Index futures are neither riskier or less riskier than stocks. That's because their prices depend on the prices of the underlying index. The risk comes from speculative positions taken by investors who use leverage to make their trades.