Template:Type of Return and swaps on futures

If you have an Equity Swap Transaction referencing a future, some debate — not all of it necessarily fruitful, but undoubtedly special in the hearts of those who enjoy metaphysical conundrums — can be had as to whether one should select Price Return or Total Return as your Type of Return, but since futures don’t generally pay dividends, on point of practical fact there is not a lot of difference, so such debate can aggravate intensely practical people such as my little sister, who despair of metaphysical conundrums.

But okay, dammit, let’s hop off the fence and stick Occam’s razor into the ointment: Since Total Return is Price Return with some extra fiddly bits relating to dividends — including the need to choose whether or not you want your dividends deemed to be reinvested — then all other things being equal — such as when, as for futures, there are no dividends for you to elect whether or not to reinvest — Price Return is the simpler, and therefore preferred, definition. There: for Equity Swaps on futures, go for Price Return.