Point Balance

AAA

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.

INVESTOPEDIA EXPLAINS '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.

RELATED TERMS
  1. Futures Commission Merchant - FCM

    A merchant involved in the solicitation or acceptance of commodity ...
  2. Futures Contract

    A contractual agreement, generally made on the trading floor ...
  3. Portfolio

    A grouping of financial assets such as stocks, bonds and cash ...
  4. Settlement Price

    In derivatives markets, the price used for determining profit ...
  5. Cash-And-Carry Trade

    A trading strategy in which an investor buys a long position ...
  6. ISDA Master Agreement

    A standard agreement used in over-the-counter derivatives transactions.
Related Articles
  1. Futures Fundamentals
    Insurance

    Futures Fundamentals

  2. All About Liquid Commodities
    Options & Futures

    All About Liquid Commodities

  3. Curious About Stock Index Futures? Read ...
    Options & Futures

    Curious About Stock Index Futures? Read ...

  4. How to Trade Futures Contracts
    Options & Futures

    How to Trade Futures Contracts

Hot Definitions
  1. Halloween Strategy

    An investment technique in which an investor sells stocks before May 1 and refrains from reinvesting in the stock market ...
  2. Halloween Massacre

    Canada's decision to tax all income trusts domiciled in Canada. In October 2006, Canada's minister of finance, Jim Flaherty, ...
  3. Zombies

    Companies that continue to operate even though they are insolvent or near bankruptcy. Zombies often become casualties to ...
  4. Witching Hour

    The last hour of stock trading between 3pm (when the bond market closes) and 4pm EST. Witching hour is typically controlled ...
  5. October Effect

    The theory that stocks tend to decline during the month of October. The October effect is considered mainly to be a psychological ...
  6. Repurchase Agreement - Repo

    A form of short-term borrowing for dealers in government securities.
Trading Center