Dividing " Point Values " by 1/4, 1/2, 1/8.... - Commodities Futures Trading | futures io social day trading

Dividing " Point Values " by 1/4, 1/2, 1/8....
 Updated: January 24th, 2015 (12:06 PM) Views / Replies: 508 / 1 Created: January 24th, 2015 (12:06 PM) by mdsvtr Attachments: 0

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# Dividing " Point Values " by 1/4, 1/2, 1/8....

 January 24th, 2015, 12:06 PM #1 (permalink) Membership Temporarily Revoked Memphis,TN   Futures Experience: Advanced Platform: ThinkorSwim,FXCM, Ensign Software Broker/Data: ThinkorSwim, FXCM Favorite Futures: Futures, Forex, Options     Posts: 232 since Sep 2010 Thanks: 853 given, 28 received Dividing " Point Values " by 1/4, 1/2, 1/8.... I swear I'm getting close, to fully understanding the dynamics and the way in which the Futures are calculated and based, and I am asking please, for some clarification to my understanding..... So, all commodities / Index Futures, are based on a \$1 move , it's just that, each Future has it's own worth on a per ...tick, .0001, .00001, .005, .01, .10, etc. move I am trying to easily convert the worth of each Future , on the basis of what each is worth, via it's worth on a 1/4 , 1/2, 1/8. 1/20 , etc.. of it's 1 Point value Here is where I found the 1 Point values for each of the Futures... Futures - Contract Specifications If we take CL in this example, .01 cent per barrel (\$10.00 per contract) = \$1,000 Then each move .01 cent move is worth \$10 There are 100 ( .01 cents ) in \$1 ( the 1 point value of CL ), so...100 x \$10 per " tick " = \$1000 ( 1 Point value ) 1/4 of the 1 point value of \$1,000 = \$250 , which would be a move in CL of .25 cents Bonds ( ZB ) Each 32nds of a point = (\$31.25 per contract); par is on the basis of 100 points \$1,000 So a 1 point move " \$1 " , is worth \$1,000 Divide \$1,000 into 32 = \$31.25 So.... if ZB moves 8 ticks, that will = \$250 Live Cattle ( LE ) Each 0.025 cents per pound = (\$10.00 per contract) = \$400 So we take.... \$1 divided by 0.025 = 40 Now multiply the 40 x \$10 ( what each " move " in LE is worth ) = \$400 ( for a full \$1 move in LE ) a 1/4 move = \$100 a 1/10 move = \$40 One more, just to make sure I'm understanding this correctly Cotton ( CT ) Each 0.01 cents per pound = (\$5.00 per contract) = \$500 So we take \$1 divided by .01 = 100 Now we multiply the 100 x \$5 ( what each " move " in CT is worth = \$500 ( for a full \$1 move in CT ) a 1/7 move = \$71 a 1/30 move = \$16 I think I finally understand how to calculate out correctly, the different commodities / Futures and from doing so, I see why a lot can be made or lost trading Futures, and why Margins ( especially overnight Margins ) are so high.... especially for SI and HO Good thing there are the Mini contracts Thanks again

 January 24th, 2015, 12:06 PM #2 (permalink) Quick Summary Quick Summary Post Quick Summary is created and edited by users like you... Add FAQ's, Links and other Relevant Information by clicking the edit button in the lower right hand corner of this message.

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