FFA cash-settled P/L: (Settlement index − Strike) × days × lot size.
Formula
$$ \text{P/L} = \pm(\text{Index} - \text{Strike}) \cdot t \cdot n $$
Symbol legend
| Symbol | Meaning | Unit | Source |
|---|---|---|---|
| $Strike$ | Contract fixed rate | USD/day or USD/t | trade ticket |
| $Index$ | Baltic average over period | USD/day or USD/t | Baltic Exchange |
| $t$ | Days (or tonnes) in contract | - | trade ticket |
| $n$ | Number of lots | - | trade ticket |
Sources
- Baltic Exchange - FFA index.