Futures Trading Examples

...of the E-mini S&P 500 worth?

$50 per point per contract

If the S&P 500 Index value is at 1540 and goes up 5 points to 1545, the difference is 5 points which equals $250.

$50 x 5 = $250 profit or loss per contract.

...of the E-mini NASDAQ 100 worth?

$20 per point per contract

For example: If the Nasdaq100 Index value is at 2800 and goes up 5 points to 2805, the difference is 5 points which equals $100.

$20 x 5 = $100 profit or loss per contract.

A small movement in the market can create big change in your futures trading account:

In anticipating rising stock prices, you buy one contract of S&P 500 E-mini stock index futures that currently trading around 1480. Your initial margin requirement is $4,000.

Since the value of the futures contract is 50 times the index, each one point change in the index represents a $50 gain or loss.

Because of the power of leverage, an increase in the index from 1480 to 1500 would produce a profit of $1,000 (20 x $50), and a decrease from 1480 to 1460 would reduce your account by $1,000 from your $4,000 margin.

So in the above example, a 2 percent change in the stock index can result in a 25 percent gain or loss in your futures margin account.

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