Adjusted Futures Price

An adjusted futures price shows the cost of purchasing, financing, and delivering the underlying assets of a futures contract. It incorporates all relevant factors, such as the price of the asset and costs associated with holding and delivering it. The adjusted futures price is calculated by multiplying the price of the underlying asset by the conversion factor, which represents the number of units to be delivered under the contract. This adjusted price helps traders account for factors like storage, financing, and other delivery-related costs when trading futures contracts.