Futures Position Risk Calculator
Evaluate contract risk, reward distance, and account exposure on open futures legs.
How the Calculation Works
Read parameters and compute total exposure: multiply order quantity by contract unit multiplier.
Evaluate terminal return at the selected target price using strict financial mathematical boundary logic.
Deduct upfront capital commitments, taxes, or net debits to produce final net profit or loss realization.
Calculation Formula
Example Calculation
2 lots Nifty Futures (100 units) with 50-point stop loss.
50 points risk on 100 units equals ₹5,000 maximum loss.
Assumptions & Parameters
- Stop-loss is assumed to execute without major slippage or gap opening.
Frequently Asked Questions
How do you calculate risk on a futures contract?
Multiply stop-loss distance in points by total contract units (Lots × Lot Size).
Why is risk higher in futures than cash stocks?
Futures are leveraged contracts; a small point move translates to large rupee profit or loss across the entire lot size.
What is an acceptable risk percentage for futures?
Most disciplined traders cap single-trade futures risk at 1% to 2% of total trading equity.
How do overnight gaps affect futures risk?
Market-opening gaps can execute past your stop-loss price, creating larger-than-expected slippage losses.
Does this calculator include margin calls?
It calculates trade capital loss; if losses exceed available free equity, margin calls occur.
How can I limit futures downside?
Use stop-loss market orders or hedge with out-of-the-money options.