![]() Now in February, the producer sells a November feeder cattle futures contract at 127/cwt. Notional Value of Order: $48,740.00 ( = 121. The producer decides that an average basis is 10/cwt, so the expected forward price for October delivery is November futures price of 127/cwt minus 10/cwt basis equals 117/cwt. Tick Value: $10 (1 points has 40 ticks, so 1 point is 400) Now my question is, how could I figure out from the contract specs? I am able to do this for most of the contracts especially index futures but not some agricultural ones. The current daily price limit for CME Feeder Cattle futures is 3.00 per hundredweight and will change to 4.50 per hundredweight effective on trade date December 18. If we multiply that with price, we get notional value of the contract. As you can see, tick size is 0.025 which is 1/40 of a point so $10 * 40 gives us $400 which is dollar equivalent of a point value. When I used CME simulator, the info displayed matches my understanding. However, I do not understand how can I find, how many ticks are in a point? Make the move to Plus500US in order to start your Futures trading journey Plus500. I understand that 0.00025 * 40,000 = $10 which is tick value or in other words dollar amount of minimum fluctuation. Youve reached our website for customers based outside of the United States. The futures contract delivery month used to compute the. The crush margin is the value of a 1400 market steer minus the value of the feeder steer. I am trying to understand how to calculate point value for each live cattle futures contract by looking at the contract's spec on CME website. Hog basis is calculated using the the Western Combelt price for 51 to 52 percent lean 185 pound carcass. Crush Margin App -Assumptions and Calculations for Market Cattle.
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