Hi,
May someone help me to understand the leverage in futures market and is it different from the FX?
For example if I operate sim account and buy a 1 contract of S&P wich is with price of 12.50$ per tick and I have 1000$ account, and the margin is 450$, then, what is the leverage?

Thanks

aleksov 

Hi, May someone help me to understand the leverage in futures market and is it different from the FX? For example if I operate sim account and buy a 1 contract of S&P wich is with price of 12.50$ per tick and I have 1000$ account, and the margin is 450$, then, what is the leverage? Thanks

If you buy 1 future that is the equivalent 50 x 2634 = 131.700$

If you have 1000$ in your account, it means your leverage = 131.7

If the future moves 0.25 (this is the minimum unit of movement, or "tick") you win/lose : 0.25*50 = 12.5

You can find the details on the CME website