1
$\begingroup$

What is the difference between the following two Brazilian futures contracts:

  1. The Ibovespa Futures Contract
  2. The Mini Ibovespa Futures Contract

As far as I can tell, both are priced in Brazilian Real (R$) following the Bovespa Index exactly. I would have guessed the mini contract to be cheaper than the full contract, or at least different in some way.

How are the Ibovespa and Mini Ibovespa futures contracts different?

$\endgroup$
2
$\begingroup$

Futures have a value per point. According to this page, the contract point value is 1 for the normal contract and 0.2 for the smaller one (Mini):

http://www.terrafuturos.com.br/valor-dos-pontos-por-contrato_eng.php

Basically you should have the same PL if you were using 5 minis or 1 normal contract, assuming that the price of the two futures is always equal (which I do not know if it is the case).

Your documentation says that your PL is:

$$ \mathrm{\Delta{Points}} \cdot \mathrm{ValuePerPoint} $$

$\mathrm{ValuePerPoint}$ is 1 for the large contract and 0.2 for the other.

$\endgroup$
  • $\begingroup$ @Randomblue: I am not sure what you mean, the values from the table (0.2 and 1) are the 'value of each point' in your formula. This is what is changing between the contracts. $\endgroup$ – BlueTrin Oct 31 '13 at 11:46

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Not the answer you're looking for? Browse other questions tagged or ask your own question.