How are profits calculated on Dow Minis?

[r-factor]

Hello.

I am new to trading furtures. I would like to know how they actually work in terms of profit. As I understand, If I buy 2 lots (2000) at 13267 lets say and price goes up to 13268 and I sell it at that price (+1 point), do I get a profit of US2000 (2000 *1 pt)?

I would be grateful if someone would explain this to me. THanks.:)

[lori]

hi, i wondered all this too! but, u can calculate your profits (and losses!) per tick. the mini dow is $5/tick. just remember u can lose it just as fast and faster than u can profit! MUST BE GOOD TRADER!!!! demo trade 1st!!!!!!!! for more info on how futures trading works, i found this website, it makes it easy to understand....
www.mytrack.com/futures/index.html
this is actually a brokerage website (they have pricey commissions) but are direct access and have some useful information.
so i hope this helps u and i hope u do really well!!:) lori.

[r-factor]

Thanks Lori. If I understand correctly than, If I buy 1 lot and the dow mini goes up 2 ticks I will profit $1000 ($5 *100 shares multiplied by 2 (ticks)) Is that how it works?

[lori]

if i'm understanding u right--by lots u must mean contracts. so 1 lot-wouldbe 100 contracts. which means u would need to be laying alot of $$ on the table right upfront. which also means you would be putting alot of $$ at risk w each trade. ***very important to know about futures--they balance their books at the end of ea day! so if u r at a loss....could be a margin call! go easy at 1st!