How Futures Profit & Loss is Calculated

Profit and loss (P&L) in futures trading is determined by the price movement between your entry and exit points, measured in "ticks." A tick is the minimum price fluctuation of a futures contract, and each tick has a specific monetary value.

The calculation is: Total P&L = ((Exit Price - Entry Price) / Tick Size) × Tick Value × Number of Contracts. This calculator breaks down the process, showing you the total movement in ticks and the resulting profit or loss, which is fundamental for setting price targets and stop-loss orders.