I'm wondering about the value of a futures contract. Specifically, how much money does one futures contract represent? I'd like to understand this better to make informed decisions in my trading.
7 answers
Valentino
Wed Dec 25 2024
Let's take gold futures as an illustration.
IncheonBeautyBloom
Wed Dec 25 2024
Assume gold futures are currently trading at $1,900 per ounce.
CryptoGladiator
Wed Dec 25 2024
If a futures contract represents 100 troy ounces of gold, the calculation is simple.
KatanaGlory
Wed Dec 25 2024
The valuation of a futures contract is straightforward.
Dario
Wed Dec 25 2024
It involves multiplying the contract size by the prevailing market price.