How to Use The Futures Calculator (2024)

To assist MEXCers in trading futures sensibly, MEXC has developed a futures calculator feature. Whether you are in the midst of futures trading or planning your trades, using the futures calculator can provide you with essential information for opening and closing positions. It aids in effective fund management, risk control, and prudent trading. This article will introduce you to the corresponding features and provide specific instructions on using them.

1. Overview

The futures calculator is a product feature within the MEXC futures trading page. Through this calculator, you can obtain six types of information: PNL, Target Price, Liquidation Price, Max Open, Entry Price, and Funding Fee.

The futures calculator is designed based on formulas involving futures profit/loss and the estimated current funding fee. Therefore, if you understand the related calculation principles, the futures calculator can help you quickly obtain relevant data, saving you the trouble of manual calculations.

Note

1.1 [PNL]

If you choose to use the [PNL] feature, it means that before or after opening a position, you want to understand how much profit or loss you would incur if the futures' fair price reaches a determined point.

Here, you will need to fill in five different pieces of information: [Long/Short], Size of Multiplier, "Entry Price", "Close Price", and "Futures Quantity".

1.2 [Target Price]

If you choose to use the [Target Price] feature, it means that before or after opening a position, you want to understand the target price the futures contract needs to reach for you to achieve your expected return rate.

Here, you will need to fill in five different pieces of information: [Long/Short], Size of Multiplier, "Entry Price", "Yield", and "Futures Quantity".

1.3 [Liquidation Price]

If you choose to use the [Liquidation Price] feature, it means that before or after opening a position, you want to understand what the fair price of the futures contract would be at that time in the event of liquidation.

Here, you will need to fill in five different pieces of information: [Isolated/Cross], [Long/Short], Size of Multiplier, "Entry Price", and "Futures Quantity".

1.4 [Max Open]

If you choose to use the [Max Open] feature, it means you want to understand, under your current available margin conditions, the maximum position you can open.

Here, you will need to fill in four different pieces of information: [Long/Short], Size of Multiplier, "Entry Price", and "Available Margin".

1.5 [Entry Price]

If you choose to use the [Entry Price] feature, it means you want to understand, under your current conditions or when opening a new position, what would be the average entry price.

Here, you will need to fill in two different pieces of information: "Entry Price" and "Futures Quantity".

1.6 [Funding Fee]

If you choose to use the [Funding Fee] feature, it means you want to understand, in the current market conditions, what is the funding fee rate for the futures contract and whether it is paid by the long or short side.

Here, you will need to fill in four different pieces of information: [Long/Short], "Fair Price", "Position Quantity", and "Funding Rate".

2. Operation Guidelines

2.1 MEXC Website

2.1.1 Enter the [Perpetual Futures] page from the official MEXC website.

2.1.2 Follow the instructions to locate the Futures Calculator at the top right corner of the futures trading page.

2.1.3 Click on each of the six different sections. Following the "Overview" content of this article, input the corresponding details and calculate the results for these six data categories.

2.2 MEXC App

2.2.1 Enter the [Futures] page on the MEXC App homepage.

2.2.2 Follow the instructions to locate the Futures Calculator at the top right corner of the futures trading page.

2.2.3 Click on each of the six different sections. Following the "Overview" content of this article, input the corresponding details and calculate the results for these six data categories.

3. Conclusion

The MEXC futures calculator offers significant advantages by being located on the trading page, as well as providing six key functionalities, including "PNL", "Target Price", "Liquidation Price", "Max Open", "Entry Price", and "Funding Fee". These features are based on the calculation of futures contract profits and the current funding fee rate, offering users relevant data. This facilitates accurate PNL estimation, goal setting, risk control, and enhances overall trading efficiency and precision. Users can make more informed and rational trading decisions, ultimately improving their trading experience.

Disclaimer: The materials are not related to the provision of advice regarding investment, tax, legal, financial, accounting, consulting, or any other related services and are not recommendations to buy, sell, or hold any asset. MEXC Learn solely provides information, but not financial advice. You should ensure that you fully understand the risk involved before investing.

How to Use The Futures Calculator (2024)

FAQs

How to use futures calculator? ›

Futures Calculator Instructions

Select the desired futures market by clicking the drop-down menu.
Choose the appropriate market type, either Bullish (Going Long) or Bearish (Going Short).
Enter your entry and exit prices. ...
Enter the number of futures contracts.

More items...

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How do you calculate futures? ›

The notional value of a futures contract demonstrates the value of the assets underlying the futures contract. To calculate the notional value of a futures contract, the contract size (in units) is multiplied by its current price. Notional value helps you understand and plan for the risks of trading futures contracts.

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What is the formula for futures trading? ›

Futures Prices = Spot Price * [1 + (RF * (X/365) - D)], where: The risk-free return rate, RF, signifies the rate one can earn throughout the year in a perfect market. A risk-free rate typically relies on the interest rate for a Treasury Bill, which is usually quoted per annum.

How do futures work for dummies? ›

A futures contract can be bought and sold constantly until the expiration date. A trader, for example, might buy a futures contract on crude oil at 10:00 a.m. for $70 and sell it at 3:00 p.m. for $72.

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How do you manipulate futures? ›

“Cornering the market” is perhaps the most popular form of futures manipulation. In this method, the manipulator must first purchase a large stake in futures contracts for delivery on a given date, while also purchasing large amounts of the underlying asset.

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How do you trade futures successfully? ›

To succeed in futures trading, focus on proper risk management, continuous learning, and disciplined execution. Achieving success in the realm of futures trading requires one to adeptly handle risk, hone their skills for trading futures, and develop a strong understanding of trade psychology.

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How do you trade futures step by step? ›

How to trade futures

Understand how futures trading works.
Pick a futures market to trade.
Create an account and log in.
Decide whether to go long or short.
Place your first trade.
Set your stops and limits.
Monitor and close your position.

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How to calculate futures position? ›

You can identify the optimal trade size by means of a calculation of the part of the trading capital which a trader is ready to put at risk when opening a trade and the stop loss size: Trading capital maximum risk ÷ Trade risk = Optimal position size.

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What is the formula for futures basis? ›

Basis is the difference in price between the futures contract and the spot index value. We generally quote Equity Index futures basis as the futures price minus the spot index value.

What is the 80 20 rule in futures trading? ›

In investing, the 80-20 rule generally holds that 20% of the holdings in a portfolio are responsible for 80% of the portfolio's growth. On the flip side, 20% of a portfolio's holdings could be responsible for 80% of its losses.

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How do you calculate futures and options? ›

Example To Calculate Turnover For F&O Trading

Step 1: Calculate the value of each trade. ● Nifty futures buy: 200 × 75 × 22,100 = ₹331,500,000. ● Bank Nifty futures sell: 150 × 25 × 48,100 = ₹180,375,000. ...
Step 2: Add up the values of all trades. Total Turnover = ₹331,500,000 + ₹180,375,000 + ₹130,000,000 = ₹641,875,000.

May 24, 2024

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How do you calculate effective price futures? ›

Effective price is calculated either by adding or subtracting the rationale change to the original cash price or the hedge of futures to the final cash price.

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What is futures with example? ›

An example of a futures contract is an agreement to buy 100 barrels of oil at Rs. 5,000 per barrel, to be delivered in three months. The buyer and seller lock in this price today, regardless of future market fluctuations.

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Is futures trading hard to learn? ›

Most traders have their hands full keeping abreast of a few markets. Remember that futures trading is hard work and requires a substantial investment of time and energy. Studying charts, reading market commentary, staying on top of news—it can be a lot for even the most seasoned trader.

What is the simple strategy of futures trading? ›

The most-often used trading strategies in the futures markets are pretty simple. You buy if you think prices are going up or sell if you think prices are going down. And, in futures trading, selling first is just as easy as buying first—the positions are treated equally from a regulatory point of view.

How do you calculate future value on a calculator? ›

Calculator Use

The future value formula is FV=PV(1+i)ⁿ, where the present value PV increases for each period into the future by a factor of 1 + i. The future value calculator uses multiple variables in the FV calculation: The present value sum. Number of time periods, typically years.

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How do you use futures? ›

How to trade futures

Understand how futures trading works.
Pick a futures market to trade.
Create an account and log in.
Decide whether to go long or short.
Place your first trade.
Set your stops and limits.
Monitor and close your position.

How do you calculate profit on futures? ›

Calculating profit and loss on a trade is done by multiplying the dollar value of a one-tick move by the number of ticks the futures contract has moved since you purchased the contract.

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