A Case Study of Minimum Volatility Range and Minimum Volatility Range
For example, the minimum fluctuation range of the London Metal Exchange aluminum futures contract is $65,438+0 per ton. Assuming that the actual trading price of aluminum on the exchange in the previous trading day was $65,438+0.250 per ton, the minimum price increase or decrease per ton of aluminum was $65,438+0 per lot. Since the trading unit of aluminum futures contracts stipulated by the exchange is 25 tons, the minimum price range of each futures contract is 25 dollars. That is to say, if the trader only sells one aluminum futures contract, the minimum price fluctuation of the trader's bidding on the floor every time is $25.