Hello.
I would like some help in how to calculate the P&L for futures trading.
This specific futures contract quotes in 0.25 steps and each 0.25 steps is worth $5. Between 8291 and 8292 there's 4 steps which equals $20.
I have the lists of trades I did:
I started my position by selling 5 contracts, then bought back 2 contracts, sold 1, bought 1, sold 2 and bought 5, closing this way my position.
The P&L for this trade should be based on the average weighted price.
My average weighted price after buying the first 5 contracts is 8292.35:
(8291.75+8292.50+8290.75+8293+8293.75) / (1+1+1+1+1) = 8292.35
I then buy my first contract at 8292.75. To get my PnL for that first contract I bought, I would do:
8292.75 - 8292.35 (average weighted price) = 0.40 (since we move is 0.25 steps, we need to round this to 0.50 which corresponds to $10)
I then buy another contract at 8293.50, and from here forward my head starts to drift, without really knowing how to continue to do the calculations in a proper way.
When I bought that first contract, my average weighted price changed. Instead of 5 contracts sold, I now only have 4.
How to I calculate the new average weighted price?
When I bought the second contract, the P&L calculation will be based on that new average weighted price correct?
But then, I sell another contract. Again, I'm completely lost here.
How to I calculate the new average weighted price? I'm now again sold 4 contracts.
And afterwards, I buy another one...
I lost tract of the time I've lost watching youtube videos, reading websites, where they discuss the average weighted price but found nothing that could help me with this.
I appreciate if anyone of you experts could give me a hand here.
Thank you so much.
I would like some help in how to calculate the P&L for futures trading.
This specific futures contract quotes in 0.25 steps and each 0.25 steps is worth $5. Between 8291 and 8292 there's 4 steps which equals $20.
I have the lists of trades I did:
Time sell/buy Qty Price 6:05:15Sell 1 8291.75 6:06:00Sell 1 8292.5 6:08:58Sell 1 8290.75 6:10:16Sell 1 8293 6:10:51Sell 1 8293.75 6:11:41Buy 1 8292.75 6:12:02Buy 1 8293.5 6:12:28Sell 1 8293.5 6:12:57Buy 1 8294 6:13:08Sell 1 8294.5 6:13:56Sell 1 8294.25 6:14:15Buy 1 8295.5 6:14:23Buy 1 8295.25 6:14:25Buy 1 8295 6:14:30Buy 1 8294.75 6:14:33Buy 1 8295
I started my position by selling 5 contracts, then bought back 2 contracts, sold 1, bought 1, sold 2 and bought 5, closing this way my position.
The P&L for this trade should be based on the average weighted price.
My average weighted price after buying the first 5 contracts is 8292.35:
(8291.75+8292.50+8290.75+8293+8293.75) / (1+1+1+1+1) = 8292.35
I then buy my first contract at 8292.75. To get my PnL for that first contract I bought, I would do:
8292.75 - 8292.35 (average weighted price) = 0.40 (since we move is 0.25 steps, we need to round this to 0.50 which corresponds to $10)
I then buy another contract at 8293.50, and from here forward my head starts to drift, without really knowing how to continue to do the calculations in a proper way.
When I bought that first contract, my average weighted price changed. Instead of 5 contracts sold, I now only have 4.
How to I calculate the new average weighted price?
When I bought the second contract, the P&L calculation will be based on that new average weighted price correct?
But then, I sell another contract. Again, I'm completely lost here.
How to I calculate the new average weighted price? I'm now again sold 4 contracts.
And afterwards, I buy another one...
I lost tract of the time I've lost watching youtube videos, reading websites, where they discuss the average weighted price but found nothing that could help me with this.
I appreciate if anyone of you experts could give me a hand here.
Thank you so much.