Question 1

How do I calculate position size for futures trading?

Accepted Answer

Contracts = Risk amount / (Stop loss in ticks x Tick value per contract). For ES (tick value $12.50) with a $25,000 account risking 1% ($250) and a 10-tick stop: $250 / (10 x $12.50) = 2 contracts. For NQ (tick value $5.00) with the same inputs: $250 / (10 x $5.00) = 5 contracts. Always round down — never round up on contract counts.

Question 2

Why is position sizing important in futures?

Accepted Answer

Futures are inherently leveraged — a single contract controls a large notional value on a small margin deposit. Getting the contract count wrong turns a normal stop-loss into a catastrophic loss. Sizing from your stop distance and tick value, rather than from available margin, is what keeps your dollar risk constant from trade to trade.

Question 3

Should I adjust position size based on market volatility?

Accepted Answer

Yes. On volatile days your stop needs more room, which means fewer contracts at the same dollar risk. ATR-based sizing does this automatically: when the average true range expands, the calculated stop widens and the contract count drops. Trading the same fixed contract count regardless of volatility means your real risk changes every session.

Question 4

What's the difference between tick size and tick value?

Accepted Answer

Tick size is the minimum price increment a contract can move; tick value is what that increment is worth in dollars. For ES, the tick size is 0.25 points and the tick value is $12.50, so one full point = 4 ticks = $50. For NQ, tick size is also 0.25 points but the tick value is $5.00, so one point = $20. Always size positions from ticks and tick value, not from margin.

Question 5

What are the tick sizes and values for common futures contracts?

Accepted Answer

ES (E-mini S&P 500): 0.25 / $12.50 per tick. MES (Micro): 0.25 / $1.25. NQ (E-mini Nasdaq): 0.25 / $5.00. MNQ (Micro): 0.25 / $0.50. CL (Crude Oil): 0.01 / $10.00. GC (Gold): 0.10 / $10.00. Micro contracts are one tenth the size of the standard E-mini contracts, which makes them useful for fine-grained sizing on smaller accounts and prop firm evaluations.

Question 6

Why does ATR-based sizing sometimes return 0 contracts?

Accepted Answer

When the ATR-derived stop (ATR x multiplier / tick size) is very wide, the cost per contract exceeds your total risk budget. This is the calculator working correctly — it is telling you that the current volatility level makes trading this contract unviable at your account size and risk settings. Consider trading the micro version of the contract instead.

Question 7

Can I use the Kelly Criterion for futures position sizing?

Accepted Answer

Yes. Kelly calculates the optimal fraction of your capital to risk based on your win rate and average win/loss ratio. That risk amount is then converted to contracts through your stop loss in ticks and the tick value. On prop firm accounts, apply Kelly to your maximum drawdown limit rather than the nominal account size, and use Half or Quarter Kelly to stay within daily loss limits.

Futures position size calculator

FAQ