Basic Formulas - Please Help ?

hi,

can anyone please let me know. I am designing an excel sheet for tracking my derivatives positions are these formulas for calculating margin requirement aka Total Investment and Profit. Please help me guys I would be more than happy to distribute that excel sheet once it is done.

1. Buying Futures: It does not matter if it is an index futures or stock futures the formula remains the same.

a. Total Investment = Buying Price X Lot Size (Standardized) X No of Lots X (Margin Required/100)
b. Profit Calculation = (Current Price – Buying Price) X Lot Size (Standardized) X No of Lots


2. Selling Futures: It does not matter if it is an index futures or stock futures the formula remains the same.

a. Total Investment = Buying Price X Lot Size (Standardized) X No of Lots X (Margin Required/100)
b. Profit Calculation = (Buying Price – Current Price) X Lot Size (Standardized) X No of Lots


3. Buying Calls: Call is an option instrument which states that the buyer has the right to acquire the shares at a particular price within a specified time. The buyer of the call only pays a premium amount upfront. The calculation for both Stock Options and Index Options remains the same.

a. Total Investment = Premium Paid (Buying Price) X Lot Size (Standardized) X No of Lots
b. Profit Calculation = (Current Price - Premium Paid) X Lot Size (Standardized) X No of Lots


4. Buying Puts: Put is an option instrument which states that the buyer has the right to sell the shares at a particular price within a specified time. The buyer of a put only pays the premium amount upfrom. The calculation for both Stock Puts and Index Puts remains the same.

a. Total Investment = Premium Paid (Buying Price) X Lot Size (Standardized) X No of Lots
b. Profit Calculation = (Current Price - Premium Paid) X Lot Size (Standardized) X No of Lots


5.Selling Calls: Selling calls means someone agrees to take the risk of delivering shares at a particular price within a specified period in return for some risk premium. Selling calls for Index or for Stock is the same thing.

a. Total Investment = Strike Price (Price of the Underlying) X Lot Size (Standardized) X No of Lots X (Margin Required/100) - Premium Received X Lot Size (Standardized) X No of Lots
b. Profit Calculation = (Premium Received – Current Price) X Lot Size (Standardized) X No of Lots


6. Selling Puts: Selling puts means someone agrees to take the risk of buying shares at a particular price within a specified period of time in return for a risk premium. Selling calls for Index or for Stock is the same thing.

a. Total Investment = Strike Price (Price of the Underlying) X Lot Size (Standardized) X No of Lots X (Margin Required/100) - Premium Received X Lot Size (Standardized) X No of Lots
b. Profit Calculation = (Premium Received – Current Price) X Lot Size (Standardized) X No of Lots

Please let me know guys. Many thanks !

you can add brokerage in the future profit formula

it wud help a lot, once done pls do send me 1 copy of tht excel sheet.

thanks

Here is a short xcel program to get you started. It is based on number of contracts, margin required per contract, the entry price, the exit price and the number of days you were in the trade. Good luck

Attached Files

Futures_d2.xls (15.0 KB, 43 views)