Future Price Calculator
Please enter the details about the asset to the calculator below.
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What is futures trading?
Futures markets are also called derivative markets. In these markets, there are transactions for the purchase and sale of any investment instrument with a predetermined amount and standards on a given date. The transactions made in this market are called forward transactions.
What is the spot market?
These are the markets in which a certain investment instrument and its equivalent money change hands as a result of the transaction. The stock market and the bond and bond markets are examples of spot markets.
What is the theoretical price?
When calculating the price of futures contracts, carrying cost (such as risk-free interest) and other costs are added to the price of the underlying asset. The term price calculated by adding the costs on the spot price and subtracting the returns is called the theoretical price.
How is the theoretical price calculated?
It is calculated by the following formula.
Theoretical Price = Underlying Spot Price x (1 + Risk-Free Interest Rate - Dividend Rate) X Days to Maturity / 365
What is the risk-free interest rate?
It is the interest rate accrued against the debt given, assuming that the borrower can pay the debt to the lender in a timely and complete manner. In other words, it is the rate of return that can be obtained without the risk of losing the invested principal and interest income.