## How to calculate futures exposure

6 Jan 2014 If an investor has physical material or stock of a particular commodity, he can hedge his exposure to the physical market by taking a reverse  ProStocks is an online flat fee stock broker. ProStocks offers Equity Cash, Equity F&O and Currency Derivatives trading at BSE and NSE in India. ProStocks  The treasury team normally hedge interest rate exposure by using whichever of the Calculation of expected futures price and hence whether options are

Use the Futures Calculator to calculate hypothetical profit / loss for commodity futures trades by selecting the futures market of your choice and entering entry  In other words, Derivative means a forward, future, option or any other or long term exposure in derivative market. calculated on the basis of the last half an. An important factor in determining the eventual price, is the basis. The basis is calculated by deducting the futures price form the spot price. By successfully  Thus, in order to achieve \$500,000 of exposure you would have to purchase five futures contracts. (Editor: see Reference 1 + Reference 3). Calculate the initial  hedge forward interest rate exposure, they now have a variety of uses. We can then use equation (2) as our futures price formula to obtain Pfut, the futures

## Leverage. With relatively lesser capital, more exposure can be achieved. Flexibility. Used in a wide range of strategies from

An important factor in determining the eventual price, is the basis. The basis is calculated by deducting the futures price form the spot price. By successfully  Thus, in order to achieve \$500,000 of exposure you would have to purchase five futures contracts. (Editor: see Reference 1 + Reference 3). Calculate the initial  hedge forward interest rate exposure, they now have a variety of uses. We can then use equation (2) as our futures price formula to obtain Pfut, the futures  Here we discuss the formula of hedge ratio along with the example, words, perfect hedge in a futures contract is the same as underlying currency exposure. The Exposure Margin is usually levied as a percentage of the Value of the Contract in addition to the SPAN Margin. Users can use this calculator as an NSE   exposure in swaps than in futures and are net short in both markets. futures open interest is generally calculated using only one side of the market, we  future date a given amount of a commodity or an asset at a price agreed on today . the forward contract you are now exposed to the risk of oil-price changes.