How to calculate the minimum change price of futures?
The minimum variable price of the contract = the variable value of the contract value ÷ trading unit. The minimum price change system of futures is the minimum quotation change value of each unit of measurement in the process of open bidding of futures exchanges. In each futures trading process, it is required that the quotation change value must be an integer multiple of the minimum price change. Generally, the minimum price change is determined according to the variety of transactions.
Formula description:
The minimum change value of contract value is the value of each contract, and the change value of contract value in the formula is equal to the number of contracts multiplied by the value. The trading unit is the number of subject matter represented by each futures contract.
In addition to the above, the minimum variable price of futures contracts is also affected by the types, properties and market price fluctuations of the corresponding contract subject matter. By setting the lowest fluctuating price, it helps to ensure the liquidity of the futures market is moderate-a small fluctuating price is conducive to the entry of more investors, while a large fluctuating price represents a high contract value, which will hinder the entry of some investors and thus affect the market activity.