how to i calculate profit/loss?

You have to think in USD value of the pair rather than futures levels.
The USD value is the futures level multiplied by the point value of the future

To calculate your P&L, you simply deduct the sale value of the 'pair' from the purchase value of the 'pair'.

Example:
If you bought ESM8 at 2,800 / sold NQM8 at 7,200 and exited this trade at levels of 2,801 and 7,199 respectively, your profit would be calculated as follows:

Sale value of the pair: (2,801 * 50) - (7,199 * 20) = (140,050)-(143,980) = -3,930
Purchase value of the pair: (2,800 * 50) - (7,200 * 20) = (140,000)-(144,000) = -4,000

P&L = (-3,930) - (-4000) = 70

I hope this helps.
 
You have to quote the spread... decide which is the denominator... pick a side.

You would trade this spread 1:1, because that way the total values of both long and short are just about the same. The pricing ratio would then be 2.5 ES : 1 NQ...
This can be the hardest bit to get your head around... but it is the correct way and will make it easier.

With NQ=7200 and ES=2800, the spread quote is +200 with the denominator in NQ.
If they move... say NQ=7220 and ES=2810, the spread quote is +195

I you were long the spread, so long 1 NQ vs short 1 ES...
you would have lost 5 points, which is:
1 (size) x 5 (points) x 20 (contractsizeNQ) = $100 loss

Now you can keep track of the spread as well... today it's +200... last week it was +50... so NQ moved up more than ES...
 
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