The total quantity of contracts traded over a specific period.
Monitoring contract volume helps traders understand their exposure and position sizing. Trading too many contracts increases risk, while trading too few may limit profitability.
A trader executes 200 contracts in a month. If their average profit per contract is $5, their total gross profit is $1,000. However, they must also account for commissions and losses.
The average profit in dollars a trader earns on a winning trade. It measures profitability per successful trade.
The average loss in dollars a trader incurs on a losing trade. It reflects the risk exposure per unsuccessful trade.
The percentage of trades that result in a profit.
A measure of profitability, calculated as the ratio of total profits to total losses. A profit factor above 1 indicates a profitable strategy.
The total count of all trades executed within a specified period (usually a month).