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I have a question regarding a Corn trade / the Profit that it is showing
So I used a Futures profit/loss calculator , and I entered the entry price of 590.00 and the exit price of 500.00 ..... so a 90 point move
Well with corn trading at $5,000 per 1 point ,
multiplying this time 90 = $450,000
And $450,000 is the number that I got also, from the futures calculator
So my questions please are......
1. Is the $450,000 profit correct ?
2. I know that even with just a 1 point stop , that would be a $5,000 risk
so even the slightest pullback and it hits your stop.... you just lost $5,000 yikes
3. There's the mini corn contract ( XC ) , that trades at 1/5 that of ZC
Still allows for great profit potential , especially if you can time your entries , almost to the " T " while just risking $1,000 ( per 1 point ) vs $5,000 on the regular contract ( ZC )
Anyways,
just wanted to run by some of my questions, and make sure that I'm not seeing things incorrectly and that my math and calculations are correct lol
Thanks for any insight and help - Michael
Can you help answer these questions from other members on NexusFi?
Corn is trading at 5,000 a Bushel, NOT $5,000
The current price 3.60 2/8 not 500, July Basis last Fri closing.
A move of $1 from 3.60 to 4.60 would be 5,000 while a move of 1 point of 3.60 to 3.61 would be $50
Grains are traded at 8ths. So 3.60 2/8 is 3.60 1/4 per bushel.
There is a substantial risk of loss in futures trading. Past performance is not indicative of future results.
Trading futures and options involves substantial risk of loss and is not suitable for all investors. Past performance is not necessarily indicative of future results. You may lose more than your initial investment. All posts are opinions and do not claim to be facts. Please conduct your own due diligence. Use only Risk capital when trading Futures.
1 800 771 6748 local 561 367 8686 email [email protected]
To add, corn is traded in dollars and cents per bushel and the minimum move (tick) is a quarter cent. A tick in corn is $12.50, with four ticks equaling one cent ($50). From there you can figure out how much a move of so many cents equals. A corn futures contract is 5,000 bushels. These same numbers apply to wheat, soybeans, and I believe oats too.
Seems accurate. Now make sure you that you follow the last trading day notices, because it is a deliverable contact, and not cash settled.
Matt
There is a risk of loss in futures trading. Past performance is not indicative of future results.
Trading futures and options involves substantial risk of loss and is not suitable for all investors. Past performance is not necessarily indicative of future results. You may lose more than your initial investment. All posts are opinions and do not claim to be facts. Please conduct your own due diligence. Use only Risk capital when trading Futures.
1 800 771 6748 local 561 367 8686 email [email protected]
