Question

Suppose you took a long position in 2 euro futures contracts at a price of $1.1235/€. If the contract size is €125,000 and if you close out your position in 1 month at a price of $1.1186/€ what is your overall profit or loss if you pay a round trip commission charge of $45 per contract?

Answer 1

long position at 1€ =			$1.1235
Position close at 1€=			$1.1186
No. of contracts =			2
Contract size			1,25,000 €
Roundtrip commission charges			$     45.00
Profit on long position = (Sale price - buying price) * no. of contracts * contract size
(1.1186-1.1235) * 2 * 125000
$    -1,225.00
Overall loss -1225 - 45 =		$ -1,270.00
So, Overall loss from this position is -$1270.