I'm trying to understand how to calculate the profit from trading futures. I've heard it involves considering the difference between the entry and exit prices, but I'm not sure about the exact formula or method to use.
7
answers
BitcoinBaroness
Sun Feb 16 2025
This difference is then multiplied by the contract size, which represents the quantity of the underlying asset covered by the contract.
CryptoTamer
Sun Feb 16 2025
Additionally, the number of contracts traded further influences the overall profit or loss.
MysticEchoFirefly
Sun Feb 16 2025
In options trading, the calculation becomes more complex due to the involvement of various factors.
CryptoLord
Sun Feb 16 2025
Futures trading involves determining profit or loss based on the difference between the contract purchase price and selling price.
Tommaso
Sun Feb 16 2025
One key factor is the option's premium, which is the price paid to acquire the option contract.