Before you place a futures order you need two numbers for the contract: the tick size and the dollar value of a tick. Guess wrong on either one and your stop distance, position size and daily loss limit are all wrong at once. Contract specifications do change, so confirm every figure below on the CME Group product page for that contract before you rely on it.
How to calculate dollar risk
Dollar risk = stop distance in points x point value x number of contracts. Add commissions and expected slippage on top. A stop order isn't a guaranteed price, and in a fast market it can fill beyond your stop. Margin is collateral your broker holds, not the most you can lose.
Equity index contracts
Your next step
Build the daily map before the session.
See how ES and NQ Key Price Levels fit the daily plan. Follow the room, practice in SIM, and review what happened around each level.
| Contract | Tick size | Tick value | Point value |
|---|---|---|---|
| ES (E-mini S&P 500) | 0.25 index point | $12.50 | $50 |
| MES (Micro E-mini S&P 500) | 0.25 index point | $1.25 | $5 |
| NQ (E-mini Nasdaq-100) | 0.25 index point | $5.00 | $20 |
| MNQ (Micro E-mini Nasdaq-100) | 0.25 index point | $0.50 | $2 |
| RTY (E-mini Russell 2000) | 0.10 index point | $5.00 | $50 |
| M2K (Micro E-mini Russell 2000) | 0.10 index point | $0.50 | $5 |
| YM (E-mini Dow) | 1 index point | $5.00 | $5 |
| MYM (Micro E-mini Dow) | 1 index point | $0.50 | $0.50 |
ES and MES are 4 ticks per point, so 1 ES point is $50 and a 0.25 move is $12.50. NQ has the same 4 ticks per point, but each point is $20, which makes a tick $5. Pay attention to YM, whose tick is a full point worth $5. It looks large on a chart in points, yet the dollar per point is small.
Energy and metals
| Contract | Size | Tick size | Tick value | Value of a $1 move |
|---|---|---|---|---|
| CL (WTI crude oil) | 1,000 barrels | $0.01 | $10 | $1,000 |
| GC (Gold) | 100 troy ounces | $0.10 | $10 | $100 |
| MGC (Micro Gold) | 10 troy ounces | $0.10 | $1 | $10 |
CL has scheduled inventory data and geopolitical news that can move the price quickly, and a $1 move is $1,000 per contract. GC is $100 per $1 move, so a $10 move is $1,000. Both are easy to underestimate when you're used to equity index points.
Stop-risk examples
These are hypothetical stop distances to show the arithmetic, not trading recommendations:
- ES, 10-point stop, 1 contract: 10 x $50 = $500
- MES, 10-point stop, 1 contract: 10 x $5 = $50
- NQ, 20-point stop, 1 contract: 20 x $20 = $400
- MNQ, 20-point stop, 1 contract: 20 x $2 = $40
- YM, 50-point stop, 1 contract: 50 x $5 = $250
- CL, $1.00 stop, 1 contract: 1 x $1,000 = $1,000
- GC, $10 stop, 1 contract: 10 x $100 = $1,000
Notice the pattern. A bigger move in points doesn't mean a bigger dollar risk. A 20-point NQ stop ($400) risks less than a 10-point ES stop plus slippage in some cases, and far less than a $1 CL stop. Always convert to dollars before entry.
You can also work backward. If your maximum risk on a trade is $200 and your stop is 10 points on MES, one contract risks $50, so the most you could take is 4 MES. On ES, even one contract risks $500, which is already above that limit, so micros are the only way to fit that plan.
Why account size matters
The contract you choose determines how big your stop can be as a fraction of your account. If you trade a small account or a prop evaluation with a trailing drawdown limit, one ES contract with a wide stop might consume a large share of your allowed loss on a single trade. Micros let you scale in smaller increments. Read the specific firm's rules to see which products are allowed and how loss limits are measured, since they differ by firm, product and account type.
Margin and hours
Intraday margin requirements are set by your broker and can change, and exchange margins change with volatility. I don't list numbers here for that reason. Check your broker's current margin page and the CME page for the product. Equity futures on CME Globex typically trade Sunday evening through Friday afternoon with a daily break, around 5:00 pm to 4:00 pm Central Time with a pause in between. Holidays and special schedules change that, so consult the CME holiday calendar and product schedule instead of assuming. The regular US equity cash open is 9:30 am ET.
Using this
Write the tick value and point value for the contract you trade at the top of your trading plan, and recompute your dollar stop each time you change the stop distance. YMI's daily ES and NQ KPL are fixed reference prices anchored to the regular-session opening print and don't change intraday. See KPL trading for the standard four-level map, and the edge calculator for expectancy math once you know your dollar risk.
About the Author
Founder, Young Money Investments · Quant Trader
Cameron trades ES, NQ, and futures across multiple market cycles. He founded Young Money Investments to teach systematic, data-driven trading and manages Magnum Opus Capital. His work emphasizes documented rules, risk controls, and review over outcome promises.
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Educational Purposes Only: The content provided in this blog is for educational and informational purposes only. It does not constitute financial, investment, or trading advice. Young Money Investments is not a registered investment advisor, broker-dealer, or financial analyst.
Risk Warning: Trading futures, forex, stocks, and cryptocurrencies involves a substantial risk of loss and is not suitable for every investor. The valuation of futures, stocks, and options may fluctuate, and as a result, clients may lose more than their original investment.
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