Futures Trade Example

About Trading Off-Exchange Futures (OTC)

ICM Brokers provides electronic access to many derivative instruments that mirror the underlying futures markets and offers them at a fraction of the margin requirements.  Additionally the ICM Brokers Trading Platform makes available a full back office function that makes it easy for traders to realize the value of open positions as well as the profit and loss calculation of closed trades.  However, it is important that traders understand how a trade works and how to calculate profits and losses manually.

Off-Exchange Futures offered at ICM Brokers

ICM Brokers focuses on giving access only to those off-exchange futures instruments that are electronically traded, highly liquid, and most desired by online traders.  By limiting our product offering, we are able to guarantee best market execution for our customers.

Particulars of the Offered Instruments

ClassDescriptionSymbolContract SizeTick value
Energy Derivatives Light Sweet Crude Oil CL 1,000 Barrels $10
Index Derivatives Dow Jones DJ $10 x Index Value $10
  Mini Dow Jones YM $5 x Index Value $5
  Mini NASDAQ NQ $20 x Index Value $5
  Mini S&P ES $50 x Index Value $12.50
Commodity Derivatives Sugar SB 112,000 lbs. $11.2
Financial Derivatives Euro EC EUR 125,000 $12.50
  British Pound BP GBP 62,500 $6.25
  Swiss Franc SF CHF 125,000 $12.50
  Japanese Yen JY JPY 12,500,000 $12.50
  Australian Dollar AD AUD 100,000 $10
  Canadian Dollar CD CAD 100,000 $10

Margin Requirements

In order to buy or sell 1 contract (lot) of a futures instrument with ICM Brokers, the investor must have a minimum of $1,000 in the account ($2,500 for off-exchange financial futures).  Though an initial margin of $1,000 is required, ICM Brokers has no maintenance margin on standard accounts.  In order to guarantee that clients’ accounts do not extend into negative equity, the trading platform automatically closes all positions at the 5% Equity/Margin ratio.

Profit and Loss Calculation Examples

• Sell 5 CL at 43.50  |  Buy 5 CL at 42.60     

   43.50 (open price)   x 5 (lots traded) x 1,000 barrels (contract size) = 217,500
   42.60 (close price)   x 5 (lots traded) x 1,000 barrels (contract size) = 213,000
                                                                                                                  $ 4,500 (Profit)
• Buy 3 DJ at 8340   |   Sell 3 DJ at 8520     

   8340 (open price) x 3 (lots traded) x 10 (contract size) = 250,200
   8520 (close price) x 3 (lots traded) x 10 (contract size) = 255,600
                                                                                               $ 5,400 (Profit)

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