COTTON (NCT)
The value of one future contract of cotton is 500 x the value of 100 pounds of cotton.
The contracts is traded on the IntercontinentalExchange (ICE)
Contract specifications
- Underlying value : 50,000 pound of cotton
- Contract size : 50,000 pound
- Value of the contract : cotton price / 100 pounds of cotton x 500
- Minimum fluctuation : 0,01 point (= $ 5 per contract)
- Periodicity : March, May, July, October and December
- Settlement type : physical
- Delivery Period : seventeen business days from end of spot month.
Trading example
- Cotton N°2 at 68,53 $
- The underlying value of one future contract of 'cotton N°2' is 68,53 x 500 = $ 34.265.
- Buy at 68,53 and sell at 75,53.
- 1 tick is 0,01 index point
- Profit: 700 x 5 = $ 3.500
