Track 'n Trade Futures End of Day

Dollar Calculator

Video Transcript

In this Track 'n Trade 5.0 Futures Trading Training video, I want to start by demonstrating for you how to take advantage of the Dollar Calculator.

Now, you'll notice in this chart, we have the Cotton #2 chart open. Simply put, all we want to do is we want to find out how big a given move in the market is.

The way we do that is we come up here to the Dollar Calculator. Simply put, if we want to find out how much money this run was- (one run, right up from the bottom to the top) In dollars, we just simply drag and stretch our Dollar Calculator from the bottom of the trend to the top of the trend. You can see that this trend was $8,410.00 long.

If we come over here to our third tab over, you can see the Settings of the Dollar Calculator. We have a number of different Settings that we can change and we can set in here. One of them is our ROR, (Return On Risk). Now, what does that mean, Return On Risk? In the commodities market, when we're working in an account that has margin- what we do, is we go into the Key and the Dollar Calculator automatically calculates this for you, based off your initial margin requirements for the trade. (which is your risk). Also, the contracts size. So, that's how we know how much this is in cotton, vs. unleaded gasoline, vs. corn, or whatever chart you're using.

So, what we do is we come in and we take a look at these different numbers and that's how we calculate the Return on Risk, the profit potential, and also, the point difference between these two points.