Future Contracts Calculator
Use this calculator to determine the number of futures contracts you may wish to purchase based on your account equity and trading plan. All investment plans should be reviewed by a financial professional before you execute them. Purchasing futures contracts is a risky investment and should only be done by experienced investors with professional advice. This calculator is only designed to help illustrate the percentage of your equity investment that is at risk with a specific future contract purchase.
Definitions
- Account Equity
- Combined value of cash, money market instruments, and open trading positions.
- Equity Risk
- Tells you how much capital is needed to 'absorb' all known market risk of a specific recommendation without over exposing the portfolio to risk.
- Initial Risk
- Tells you what is 'at stake' initially on a specific trade recommendation.
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