Point Balance

DEFINITION of 'Point Balance'

A statement typically produced at the end of the calendar month indicating the profits and losses of a client's open futures contracts.

BREAKING DOWN 'Point Balance'

Generally, a futures commission merchant will issue point balances based on the official closing or settlement prices of futures contracts held within the investor's portfolio. This provides a summary of overall portfolio health.

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RELATED FAQS
  1. What is the difference between forward and futures contracts?

    Fundamentally, forward and futures contracts have the same function: both types of contracts allow people to buy or sell ... Read Answer >>
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    Every morning before North American stock exchanges begin trading, TV programs and websites providing financial information ... Read Answer >>
  3. How can a futures trader exit a position prior to expiration?

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