How to Read a Month-End Futures Statement

This post will go over the standardized month-end futures statement. This statement is generated every month-end by your commodity/futures broker.

While similar to the daily equity run (see prior post How to Read a Futures Statement), the month-end statement is different, it has no trade prices! Both the month-end and daily statements are needed to have a complete picture of one's futures account. 

The following is the actual redacted "Monthly statement" for my recently opened small account at T. D. Ameritrade. 

The statement starts with the standard header: broker name, your name, address, account number, etc. It then continues with two sections. The first, YOUR ACITVITY THIS MONTH, is a ledger of the cash debits and credits to your futures account. 

Line 1 on 1/7/21 shows an opening trade for the purchase of one MNQH21 futures contract charging fees and  commissions totaling $2.47. NO TRADE PRICE IS SHOWN. 

The purchase and sales prices are NOT on monthly statements, they are only on your confirmations or daily statements. This can sometimes be confusing since you need BOTH the daily and monthly statements to understand the account. 

Opening trades initiate or "open" positions, either long or short. Closing trades "close" positions and create a profit or loss depending upon the opening and closing prices. Every trade is opening or closing except for when positions, as in deliverable commodities, are closed by deliveries. Longs deliver and shorts receive (i.e. buyers receive 5000 bushels of wheat or sellers deliver them).

Line 2 is another opening trade and another fee and commission debit. 

Line 3 shows the credit for a transfer from my TDA equity account to meet my initial margin call. 

Lines 4 and 5 show more cash transfers from my equity to futures account.

Line 6 on 1/13/21 shows a SWEEP or transfer OUT of my futures into my equity account. This is because I my positions increased in value and created a surplus or margin excess. This broker automatically keep futures accounts in balance with automatic sweeps. 

Line 7 and 8 are more withdrawals from futures to equity.

Line 9  on 1/28/21 shows a closed 'P&L', that is a profit or loss on a closed trade. Here 1 MNQH21 was closed out for a profit of $235, thus the credit. 

Line 10 shows the fees and commissions on the 1/28 MNQ closing trade. 

Line 11 shows the same for the closed MES position except this was a loss or debit of $422.50.

Line 12 shows the MES fees and commissions debit.

Line 12 shows the cash being swept out of the futures account.

Line 13 shows an automatic transfer into my futures account. 

The second section is the summary of the account's cash activity. 

Line 1 of this section shows my zero starting balance.

Line 3 shows the zero ending balance (since there were no positions in the account at month end).

The remaining lines sum up the month's P&Ls, commissions and fees. 

With any luck, my account will show gains as the year continues. 

Disclaimer: Posts are for education only and not investment advice, may be subject to change without notice, and, while prepared with care, may be subject to omissions and errors. Please follow this blog by email.