Chance of profits

The chance of profits in doing transaction in Commodity Futures Trading is when we get profit even at the price of the commodity increase or decrease (two ways oppourtunity).

Chance of Profits when the price increases

At 10 Februari 2005, Mr. “A” make an order - Buy New(BN) for “Corn” 1 lot at contract month - Maret 2006 with the price 14700 session P3.

At 18 Februari 2005, Mr. “A” closing buy position with Sell Liquidation(SL) at contract month - Maret 2006 with the price 15490 session P3.

Calculation of the transaction results:
Formula:
Gross Profit = (SL-BN) xTotal lot x Contract Size
                       = (15490 – 14700) x 1 lot x 100
                       = 790 x 100
                       = 79000 yen

Nett Profit = 79000 – (1 lot x 6000 (commission/lot))
                   = 79000 – 6000
                   = 73000 yen
(equal to Rp. 5.110.000 with index Y/IDR=70)

Chance of Profits when the price decreases

At 17 Februari 2005, Mr.“B” make an order Sell New(SN) “Red Bean” at contract month - Juli 2005 with the price 9700 Session P3.

At 21 Februari 2005, Mr.“B” closing sell position withBuy Liquidation(BL) in contract month - Juli 2005 with the price 9550 Session P1.

Calculation of the transaction results:
Formula:
Gross Profit = (SN-BL) x total lot x Contract Size
                       = (9700 – 9550) x 1 lot x 80
                       = 150 x 80
                       = 12000 yen

Nett Profit = 12000 – (1lot x 6000 (commission))
                   = 12000 – 6000
                   = 6000 yen
(Equal to Rp.420.000 with index Y/IDR=70)