How does Futures trading work in InvestLAB?
In InvestLAB, you can simulate Futures trading using a margin account, which allows you to take leveraged positions with virtual capital. Here's how it works:
Step-by-Step Overview:
1. Trading with Margin
Each time you open a Futures contract, you must hold a margin of RM5,000 per contract. This amount is temporarily locked from your available funds to support your position.
2. Transaction Fee
Every trade (buy or sell) comes with a flat RM10 transaction fee.
3. Position Tracking
Your open positions are shown in the Quantity column:
- Positive quantity = Long position (you expect the price to go up)
- Negative quantity = Short position (you expect the price to go down)
4. Profit & Loss Calculation
As the price of the Futures contract changes, your available funds are updated to reflect gains or losses.
💡 Formula to calculate Profit/Loss:
- Profit/Loss=Change in Price×Value per Point×Number of Contracts×(−1 if Short)Profit/Loss=Change in Price×Value per Point×Number of Contracts×(−1 if Short)
- Change in Price = Current price - Entry price
- Value per Point = Depends on the specific Futures contract
- Number of Contracts = Quantity of contracts held
- Short positions are multiplied by -1 to reflect inverse price movement
5. Opening New Contracts
You can only open a new Futures position if you have enough available funds to cover the required margin. If your funds are insufficient, the system will prevent the trade.