💰 How Much is Each Point Worth in the Mini Dollar? Understanding Pricing and Trading Rules
If you are starting to trade mini dollar futures, one of the first questions that arises is: how much is each point worth? Understanding this dynamic is essential to calculate profits, losses, and the impact of price fluctuations on your capital.
📌 How is the mini dollar quoted?
The mini dollar future is quoted in Brazilian reais per thousand units of dollars. For example, if the contract is priced at R$ 2,350, that means the dollar is worth R$ 2.35.
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Each mini dollar contract represents US$ 10,000, and the smallest price variation is called a tick, which equals half a point.
🔢 Tick, point, and financial value
- Tick: the smallest possible price variation in the mini dollar (0.5 point)
- 1 point = 2 ticks
- Value of 1 point = R$ 10 per contract
Therefore, if the price moves by 10 points, the financial impact will be R$ 100 per contract. This calculation is essential to define profit targets, loss limits, and entry and exit strategies.
🛒 Buying and selling: how to profit from price movements?
In the futures market, you can trade both on the upside and the downside of prices. This is achieved through daily settlement and the flexibility of operations.
📈 Rule 1: Buy first, then sell
You profit when you buy the contract at a lower price and sell it at a higher price.
📉 Rule 2: Sell first, then buy
You can also profit from falling prices by selling the contract at a higher price and buying it back at a lower price.
This dynamic is possible because, when starting any trade, you need to have a margin deposit with the broker, which serves as security against market fluctuations.
⚖️ Profits and losses: how to calculate?
✅ Profit examples:
- Buy at R$ 2,350 and sell at R$ 2,360 → gain of 10 points = R$ 100 per contract
- Sell at R$ 2,360 and buy back at R$ 2,350 → gain of 10 points = R$ 100 per contract
❌ Loss examples:
- Buy at R$ 2,360 and sell at R$ 2,350 → loss of 10 points = R$ 100 per contract
- Sell at R$ 2,350 and buy back at R$ 2,360 → loss of 10 points = R$ 100 per contract
These values may vary according to the number of contracts traded and the broker’s operating costs.
📚 Possible operations: Day Trade and Swing Trade
- Day Trade: positions opened and closed on the same day
- Swing Trade: positions held for more than one day
Both allow gains and losses, and require attention to risk management, discipline, and strategic planning.
Read more about margin and leverage.