The Futures Profit Calculator allows users to compute their potential profit, loss, and return on equity for trading futures contracts based on variables such as entry and exit prices, contract size, leverage, and position type.
Futures Profit Calculator
Use Our Futures Profit Calculator
How to Use the Futures Profit Calculator
The Futures Profit Calculator is a tool designed to help you determine the profitability of your futures trading positions. By following these steps, you will be able to calculate the initial margin, position size, potential profit or loss, and more.
Step 1: Enter the Entry Price
Begin by entering your entry price—the price at which you plan to enter the futures contract. Ensure that this value meets the minimum requirement of 0.00001.
Step 2: Enter the Exit Price
Next, input your target exit price, which is the price at which you plan to exit the futures contract. Like the entry price, this should also be at least 0.00001.
Step 3: Specify the Contract Size
Provide the contract size, representing the number of futures contracts you will be trading. Make sure this value is no less than 0.01.
Step 4: Choose the Leverage
Select your desired leverage from the available options: 1x, 2x, 3x, 5x, 10x, 20x, 50x, 100x, or 125x. Leverage allows you to control a larger position with a smaller amount of capital, but it also increases risk.
Step 5: Select the Position Type
Decide whether you are taking a ‘Long’ (buying) or ‘Short’ (selling) position. This choice will affect the calculation of profit or loss depending on the direction of the price movement.
Review the Results
- Initial Margin: The calculator will display the required initial margin, calculated as
(entryPrice * contractSize) / leverage
. This represents the amount of capital needed to open the position. - Position Size: The total position size, calculated as
entryPrice * contractSize
, will also be shown. This indicates the monetary value of the contracts at the entry price. - Profit/Loss: The calculator will compute your potential profit or loss. For a ‘Long’ position, it’s calculated as
(exitPrice - entryPrice) * contractSize * leverage
; for ‘Short’, it’s(entryPrice - exitPrice) * contractSize * leverage
. - ROE %: The Return on Equity percentage is calculated as
(profitLoss / initialMargin) * 100
, reflecting the efficiency of your investment. - Price Change %: Lastly, the percentage change in price is calculated as
((exitPrice - entryPrice) / entryPrice) * 100
, showing the relative price movement.
By carefully entering all required inputs and reviewing the calculated results, you can make more informed decisions about your futures trading strategies.