A one-point move on ES and a one-point move on NQ aren't the same amount of money, and mixing them up is how traders end up with a loss twice the size they planned. Before you trade a contract live, you should be able to turn any price move into dollars without thinking.
The formula
Gross result = (exit price minus entry price) × point value × contracts for a long, and the reverse subtraction for a short. Net result = gross minus commissions, exchange and clearing fees, and the cost of slippage. Verify contract specs on the exchange's product page, since tick sizes and multipliers are set by the exchange and can change.
Equity index futures
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 | Tick value | Point value |
|---|---|---|---|
| ES | 0.25 | $12.50 | $50 |
| MES | 0.25 | $1.25 | $5 |
| NQ | 0.25 | $5.00 | $20 |
| MNQ | 0.25 | $0.50 | $2 |
| RTY | 0.10 | $5.00 | $50 |
| M2K | 0.10 | $0.50 | $5 |
Micros are one tenth the size of their full-size counterparts, so the dollar values divide by ten.
Worked examples (hypothetical prices)
ES long. Buy 1 at 5,200.00 and sell at 5,208.00. That's 8 points × $50 = $400 gross. As ticks, 32 ticks × $12.50 is the same $400. Do it on 3 MES and it's 8 × $5 × 3 = $120.
NQ long. Buy 1 at 18,000.00 and sell at 18,025.00. That's 25 points × $20 = $500 gross. The same move on 5 MNQ is 25 × $2 × 5 = $250.
RTY short. Sell 1 at 2,100.00 and cover at 2,095.00. That's 5 points × $50 = $250 gross, because you profit when price falls.
Losing trade. Buy 1 ES at 5,200.00 and stop out at 5,194.50. That's minus 5.5 points × $50 = minus $275 gross, and costs make the net loss larger. If the stop slips an extra tick, add $12.50.
Other contracts you may see
CL (crude oil) has a $0.01 tick worth $10 and a $1,000 move per $1 in price, since the contract covers 1,000 barrels. Buying at 78.00 and selling at 78.50 is $0.50 × $1,000 = $500 gross. GC (gold) has a $0.10 tick worth $10 and $100 per $1 move, because the contract is 100 troy ounces. Buying at 2,300.00 and selling at 2,310.00 is $10 × $100 = $1,000 gross. YM (Dow) is $5 per point and MYM is $0.50 per point. Always check the current specification before relying on a table copied from an article, including this one.
Add costs before you judge a trade
Suppose a hypothetical ES round trip costs $4 in fees and gives up one tick of slippage ($12.50). The $400 winner nets $383.50, and the $275 loser becomes a $291.50 loss. A trade that looks like 1:1 on the chart can be worse than 1:1 once costs are in, which matters most for small targets. The edge calculator can help you see what win rate your numbers require.
Turn a stop into a position size
Start with the dollars you're willing to lose, then divide by the dollar value of your stop distance per contract.
- Hypothetical $25,000 account, 1% risk is $250. A 5-point ES stop is $250, so 1 ES fits.
- A 10-point ES stop is $500 per contract, which exceeds $250. Use MES instead: 10 points is $50 per contract, so 5 MES is $250.
- A 10-point NQ stop is $200 per contract, so 1 NQ fits under $250 before costs. A 15-point stop is $300, which doesn't.
Round down, never up, and leave room for slippage. The 1% figure is only an example; your own risk limit is a decision for you, and prop firms add their own daily loss and drawdown limits that you need to read in the rule document.
Margin is not your loss limit
Margin is collateral your broker or the exchange requires to hold a position. It isn't the most you can lose, and losses can exceed it, especially if a stop slips in a fast market. Brokers can set their own requirements and they differ from the exchange's, so check the current numbers with yours. Futures margin is also separate from securities margin rules. FINRA replaced its pattern day trader requirements with intraday margin rules effective June 4, 2026, and brokers may transition through October 20, 2027, so some securities brokers may still apply the older rule for now. The Investor.gov glossary explains that securities-account rule. It does not set your futures margin.
Habits worth building
- Say the contract and its point value out loud before every order.
- Write the stop in dollars, not only points.
- Check the quantity field after each change of contract, since a leftover size from the last symbol is a classic error.
- Do the math on SIM before live and confirm that the platform's P&L matches yours.
For sizing and margin detail, see the position sizing guide and futures margin explained. If you want a course and daily ES and NQ KPL levels to practice with, start the 7-day Intro trial, then $97 per month.
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.
CFTC Rule 4.41 - Hypothetical or Simulated Performance Results: Certain results (including backtests mentioned in these articles) are hypothetical. Hypothetical performance results have many inherent limitations. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown. In fact, there are frequently sharp differences between hypothetical performance results and the actual results subsequently achieved by any particular trading program.
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