You are here: HomeFuturesPricingWhich Factors Influence the Price of a Futures Contract?

Which Factors Influence the Price of a Futures Contract?

The futures price of an underlying instrument can be calculated with a simple arbitrage equation. The following factors are involved here:

  • Price of the underlying instrument
  • Financing costs
  • Return on the underlying instrument /li>
  • Term of the futures transaction

The equation is:

Go to top