Futures Trading Calculator
Calculate your P&L, Required Margin, and ROI for Long or Short positions.
How to Use the Futures Calculator
Futures trading involves buying or selling an asset at a predetermined price in the future. Because futures are traded with leverage, small price movements can lead to significant profits or losses. This calculator helps you determine your exposure before entering a trade.
- Trade Direction: Select "Long" if you expect the price to rise, or "Short" if you expect it to fall.
- Leverage: This is the multiplier for your capital. 10x leverage means you can control a position 10 times larger than your actual balance.
- Entry & Exit Price: The price at which you open and intend to close the trade.
- Quantity & Multiplier: The number of contracts and the specific value each contract represents (e.g., in Gold futures, one contract might represent 100 ounces).
Understanding the Math
The calculation for a futures trade involves three main components: Notional Value, Initial Margin, and Profit/Loss (P&L).
Notional Value: Entry Price × Quantity × Contract Multiplier
Initial Margin: Notional Value / Leverage
For a Long position, P&L is calculated as: (Exit Price - Entry Price) × Quantity × Contract Multiplier.
For a Short position, P&L is calculated as: (Entry Price - Exit Price) × Quantity × Contract Multiplier.
Practical Example
Imagine you want to trade Bitcoin Futures. You enter a Long position for 1 BTC at $60,000 with 10x leverage. Your contract multiplier is 1.
- Notional Value: $60,000
- Initial Margin: $60,000 / 10 = $6,000
- If the price rises to $63,000, your P&L is: ($63,000 – $60,000) × 1 = $3,000.
- Your ROE would be: ($3,000 / $6,000) × 100 = 50%.
Even though the price only moved 5%, your 10x leverage resulted in a 50% return on your invested margin.