Futures for Everyone: A Closer Look at Spot-Quoted Futures

Daily financing adjustment as a percentage of the change of the underlying close over close (close today [T] vs. close yesterday [T-1])This minimal impact of the financing adjustment to a trader’s PnL if the position is held overnight can be shown in a few ways:It is important to note that for intra-day traders, or positions which are closed within the same trade date, the financing component will not impact the PnL and is irrelevant.For a full breakdown of Spot-Quoted futures and its mechanics, please read ...