Trading Futures

[Henry]

I came across this option on some platforms, but never investigated it. It is similar to forex, but how does one calculate the tick values? Does it differ from broker to broker or does a tick on the S&P 500 have the same value regardless of whom you trade with? I do know that it depends on the lot size, so it not necesary to remind me of that.

Let's use a standard lot of $100 000 as an example.

[BubbleGum]

Those tick increments and values are based on one contract or share. To calculate how much you stand to gain or lose on each tick movement after having traded multiple futures contracts, multiply the tick value times the number of contracts you purchased.

[dangtrader]

Originally Posted by Henry

I came across this option on some platforms, but never investigated it. It is similar to forex, but how does one calculate the tick values? Does it differ from broker to broker or does a tick on the S&P 500 have the same value regardless of whom you trade with? I do know that it depends on the lot size, so it not necesary to remind me of that.

Let's use a standard lot of $100 000 as an example.

Futures have contract size, tick value is usually specified in contract specification (same as in MT4)

[PapiaKhatunAsha]

Trading futures is a bit risky so traders should use major pairs to trade and for sure they can use FreshForex broker since they don't cut any spread for some major pairs.

[BubbleGum]

Futures are a great vehicle for hedging and managing risk; If someone is already exposed to or earns profits through speculation, it is primarily due to their desire to hedge risks.