Futures Calculator

Step-by-Step Guide to Using the Futures Trading Calculator

The Futures Trading Calculator is designed to help traders analyze potential trades in futures markets by calculating key metrics such as position size, required margin, profit or loss, return on investment, and more. Follow this step-by-step guide to effectively use the calculator for your trading decisions.

Step 1: Enter Trade Details

• Entry Price: Input the price at which you plan to enter the futures contract. This field is required and must be a number greater than or equal to 0.00001.
• Target Exit Price: Input the price at which you plan to exit the contract. This field is also required and must be greater than or equal to 0.00001.
• Contract Size: Indicate the size of one futures contract in terms of the underlying asset. This is required and must be a positive number greater than or equal to 1.
• Number of Contracts: Specify the number of futures contracts you intend to trade. This entry is necessary and should be a number greater than or equal to 1.

Step 2: Choose Leverage

• Leverage: Select your desired leverage from the following options: 1x, 2x, 5x, 10x, 20x, 50x, 100x. Leverage can enhance both potential profits and potential losses.

Step 3: Select Margin Type

• Margin Type: Choose between ‘Isolated’ and ‘Cross’ margin types. Isolated margin limits the risk to the initial margin allocated for a specific position, while cross margin uses the full balance of your account to prevent liquidation.

Step 4: Review Calculations

• Position Size: This value is automatically calculated based on your inputs as entryPrice * contractSize * contracts. It represents your total invested position.
• Required Margin: Calculated as positionSize / leverage, this is the amount of funds required to open your position.
• Profit/Loss: This reflects the potential gain or loss from the trade and is calculated by the formula (exitPrice - entryPrice) * contractSize * contracts.
• Return on Investment (ROI): Calculated as (profitLoss / requiredMargin) * 100, this percentage value shows how much you could potentially gain relative to the required margin.
• Leveraged Return: By evaluating returnOnInvestment * leverage, you can see the expected return magnified by leverage.
• Liquidation Price: This is determined by the formula entryPrice * (1 - (1 / leverage)) and indicates the price at which your position might be liquidated.

Ensure all fields are correctly filled out to view accurate results. This calculator is a tool for providing potential scenarios and should not be used as definitive financial advice. Always consider market risks and seek professional guidance when needed.