how to calculate contract size

Discussion in 'Energy Futures' started by tradingcards, Jul 20, 2007.

  1. how do you find out how much one contract of any futures contract will control? how do you find out how much you will actually win or lose per dollar or cent move depending on each contract?

    thanks for any help
     
  2. % of your capital to use to buy contract = Buyprice/(Stop Size or Volatility);

    for volatility use ATR or Stdev for your timeframe.
     
  3. Dude..
    If one gold contract controls 100 oz of gold
    and gold is trading at $680 / oz...
    You control $100*680 = $68,000 worth of gold..

    If you buy gold at $680/oz, and it goes up $5/oz to $685/oz, you are up $5 * 100 oz of leveraged gold, = $500 / contract