Futures Profit Calculator

Futures P&L — The Basic Mechanics

Futures profit and loss is linear and simple. Unlike options, there is no premium decay or strike price complexity. If you buy 1 lot of Nifty futures at 24,000 and it moves to 24,200, you make ₹200 × 75 = ₹15,000. If it falls to 23,800, you lose ₹200 × 75 = ₹15,000.

The formula:

Because you control the full contract with only 10-15% margin, your return on margin can be extremely high — or extremely negative. A 1% move in Nifty produces roughly a 7-10% gain or loss on your deployed margin.

Mark-to-Market Settlement — Daily P&L Realization

Futures positions are marked to market daily at NSE's daily settlement price (usually close to the closing spot price). This means profits and losses are credited or debited to your account every evening — unlike stocks where you only realize P&L when you sell.

If you bought Nifty futures at 24,000 and the daily settlement price is 23,900, you are immediately debited ₹7,500 (₹100 × 75) that evening. Your broker does not wait for your stop loss — the money leaves your account daily. If this debit causes your account balance to fall below the maintenance margin level, you get a margin call the next morning.

This daily settlement mechanism eliminates the risk of large accumulated losses for the exchange clearing corporation. For traders, it means cash flow management is critical with large futures positions. Hold a buffer above margin requirements, especially overnight.

Futures vs. Spot Returns — The Margin Amplification Effect

The table below illustrates how margin amplifies percentage returns. Same directional move, very different percentage outcomes depending on whether you hold spot or futures.

Rollover — Carrying Positions to the Next Expiry

Futures contracts expire on the last Thursday of every month. If you want to hold a position beyond expiry, you roll over — you close the current month contract and open the same position in the next month contract.

Rollover costs money because of the cost of carry — the difference between near-month and next-month futures prices. For index futures, this is typically driven by interest rate carry (roughly 0.5-0.8% per month for Nifty). Stock futures also factor in dividends expected before the next expiry.

For traders who roll long positions every month, the cumulative rollover cost over a year can be 6-8% — a meaningful drag on returns. This is one structural advantage physical ETFs have over futures for long-term index exposure. But for hedging, short selling, or tactical positioning, futures remain irreplaceable.