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futures-leverage

Futures P&L Calculator

Calculate futures trade profit, points gained, notional exposure, and return on deposited margin.

Futures Realized P&L
+₹25,000.00
Points Captured+250.00 pts
Total Traded Units100 Units (2 Lots)
Notional Contract Value₹24,50,000
Return on Deposited Margin+8.50%
Effective Leverage Ratio8.3x

How the Calculation Works

Step 1: Input Valuation

Read parameters and compute total exposure: multiply order quantity by contract unit multiplier.

Step 2: Payoff & Boundary Evaluation

Evaluate terminal return at the selected target price using strict financial mathematical boundary logic.

Step 3: Frictional & Premium Netting

Deduct upfront capital commitments, taxes, or net debits to produce final net profit or loss realization.

Calculation Formula

Futures P&L = (Exit Price - Entry Price) × Lots × Lot Size

Example Calculation

Buying 2 Lots of Nifty Futures (100 units) at 24,500 and squaring off at 24,750.

Outcome: Points: +250.00 pts | Realized P&L: +₹25,000.00 | Notional: ₹24,50,000.00

A 250-point gain across 100 contract units yields ₹25,000 gross gain on a ₹24.50 Lakh notional contract value.

Assumptions & Parameters

  • Calculations evaluate gross trade P&L; statutory exchange charges and STT are computed separately.

Frequently Asked Questions

How is futures P&L calculated?

Futures P&L is calculated by multiplying points gained or lost by total underlying units (Lots × Lot Size).

What is contract notional value?

Notional value is the total underlying cash value controlled by the futures contract (Price × Lot Size × Lots).

How does return on margin differ from return on notional value?

Because futures are traded on margin, a 1% move in notional value can yield an 8% to 15% return on your deposited margin.

Can a short futures position generate profit?

Yes. In a short futures position, you profit when the exit price is lower than your entry price.

Are mark-to-market (MTM) settlements modeled here?

This calculator determines total realized P&L between entry and exit rather than daily interim cash debits and credits.

Does this calculator deduct brokerage fees?

No. For an exact net deduction of exchange turnover, SEBI fees, and GST, consult our Indian Brokerage Calculator.