A contract with a defined specification
A futures contract has standardized terms and a set expiration date. This guide to exchange-traded futures focuses on the specific contract, its tick size, and its monetary value. Currency futures also exist, so currency markets and futures are not mutually exclusive categories.
Take CME's E-mini Nasdaq-100 contract, NQ, and its smaller Micro E-mini Nasdaq-100 contract, MNQ. Position size is a whole number of the chosen contract. One MNQ is a separate exchange-traded contract with its own specification.
Points and ticks are different units
A tick is the minimum price increment. For an outright trade in NQ or MNQ, it is 0.25 index points, so one point contains four ticks. The monetary value differs between the two contracts.
| Contract | Value of 1 point | Tick size | Value of 1 tick |
|---|---|---|---|
| NQ — E-mini Nasdaq-100 | 20 USD | 0.25 points | 5 USD |
| MNQ — Micro E-mini Nasdaq-100 | 2 USD | 0.25 points | 0.50 USD |
Same stop distance, different loss
Suppose the stop price is 15 index points from entry and the position contains one contract. The planned gross loss is 300 USD for NQ and 30 USD for MNQ. This calculation assumes a fill at exactly the specified stop price. Commissions and any slippage must be assessed separately.
If the chosen stop distance and the value of one contract produce more risk than you can accept, you cannot solve the sizing problem by entering a fraction of an NQ contract. You need to reconsider the contract choice or the trade itself.
Market data and contract expiration
Exchange data lets you analyze trades and the order book for a particular contract. The depth you can see depends on your data feed. These data do not reveal every participant's intentions or all global demand for the index.
Futures contracts expire. To keep a position open in a later contract month, you close the current contract and open the next one. As expiration approaches, check where trading volume is concentrated. The chart you select and the contract you trade must match the analysis you intend to make.
Margin and trading costs
Margin is the collateral required for a position. It does not set the maximum possible loss. Price movement and position size affect the trade's result. Costs include any applicable commissions, exchange and clearing fees, and the spread. Check your provider's market data and platform fees separately.
Futures prop accounts need a separate calculation
For a Topstep Trading Combine 50k account, the initial Maximum Loss Limit (MLL) level is 48 000 USD. This level trails the highest end-of-day balance until it reaches the starting balance, and it does not move down after a loss. The limit is monitored while positions are open, and reaching it is a breach. Rules checked on 17.10.2026.
This site's 5% / 10% exercise model therefore cannot be applied automatically to a futures prop account. It does not model a trailing loss limit. The account's name alone is not enough to calculate risk: you need the rules of the specific program, the account stage, and the remaining room before the limit.