How many contracts should I trade?

Divide the dollar amount you accept to lose by the loss per contract at your stop, and round down. For a $500 risk and a 40-tick ES stop at $12.50 per tick, that is one contract.

What is the tick value of ES?

The E-mini S&P 500 moves in 0.25-point ticks worth $12.50 each, so one point is $50. Confirm on the CME Group contract specification page.

Blog / Risk

How to Calculate Futures Position Size: ES, MES, NQ and MNQ Examples

Calculate futures position size from your risk, the stop distance in ticks and the tick value. Worked examples for ES, MES, NQ and MNQ, plus common mistakes.

The three numbers you need

To size a futures trade you need your risk in dollars, your stop distance in ticks and the dollar value of one tick for the contract. The number of contracts is the risk divided by the loss per contract, rounded down, because you can only trade whole contracts.

Formula: contracts = floor(risk in dollars / (stop in ticks x tick value)).

Tick values for common contracts

Standard CME Group specifications: E-mini S&P 500 (ES) moves in 0.25-point ticks worth $12.50, which is $50 per point. Micro E-mini S&P 500 (MES) has the same tick size, worth $1.25 per tick, $5 per point. E-mini Nasdaq-100 (NQ): 0.25-point ticks worth $5, $20 per point. Micro Nasdaq-100 (MNQ): $0.50 per tick, $2 per point. Always confirm on cmegroup.com because exchanges can change specifications.

Worked example: ES

You have $50,000 and risk 1%, which is $500. Your stop is 10 points away. 10 points is 40 ticks (10 / 0.25). Each ES tick is $12.50, so one contract risks 40 x 12.50 = $500. Contracts = 500 / 500 = 1. You trade one ES contract and your maximum loss at the stop is about $500, before commissions and slippage.

Worked example: MES

With the same $500 risk and the same 10-point stop, one MES contract risks 40 ticks x $1.25 = $50. Contracts = 500 / 50 = 10. Ten micros give you the same $500 risk as one ES, but you can scale the size in smaller steps, which matters on small accounts or tight stops.

When the answer is zero

If one contract risks more than your limit, the result rounds down to zero. For example, a $100 risk with a 20-tick ES stop: one contract risks 20 x 12.50 = $250, so the size is zero. The right response is to use the micro contract, widen your risk if that is part of your plan, or skip the trade. Never round up to one contract to get a trade.

Mistakes that break the math

Using the wrong tick value, mixing up points and ticks, forgetting commissions, and sizing from a stop you will not actually use. Slippage means a stop can fill worse than planned, so keep a buffer. For prop firm accounts, also compare the size with the daily loss limit, not only the per-trade risk.

Key takeaways

Contracts = risk / (stop in ticks x tick value), rounded down.
ES is $12.50 per tick, MES $1.25, NQ $5, MNQ $0.50.
If the result is zero, use a smaller contract or skip the trade.
Include commissions and slippage in your buffer.

FAQ

How many contracts should I trade? Divide the dollar amount you accept to lose by the loss per contract at your stop, and round down. For a $500 risk and a 40-tick ES stop at $12.50 per tick, that is one contract.
What is the tick value of ES? The E-mini S&P 500 moves in 0.25-point ticks worth $12.50 each, so one point is $50. Confirm on the CME Group contract specification page.

Educational content, not financial advice.