Futures trip up traders coming from stocks because the P&L math is different. With a stock, a dollar move on 100 shares is $100 — simple. With futures, the price is quoted in points or dollars, but your profit and loss are measured in ticks, and each contract has its own tick value. Get this wrong and you'll either size way too big or misread how much a trade is actually risking. Get it right and futures become one of the most precise instruments for risk control there is.
Ticks and tick values
A tick is the smallest amount a contract's price can move. A tick value is what that tick is worth, in dollars, per contract. These are fixed by the exchange for each product:
| Contract | Tick size | Tick value |
|---|---|---|
| ES (E-mini S&P 500) | 0.25 pt | $12.50 |
| MES (Micro S&P 500) | 0.25 pt | $1.25 |
| NQ (E-mini Nasdaq 100) | 0.25 pt | $5.00 |
| CL (Crude Oil) | 0.01 | $10.00 |
| GC (Gold) | 0.10 | $10.00 |
Always confirm the current specs with your broker or the exchange — contract specifications can change, and this table is for illustration. The futures profit calculator and futures position size calculator have these built in so you don't have to memorize them.
Turning a move into dollars
The formula is always the same:
P&L = Ticks moved × Tick value × Contracts
Suppose you buy 2 ES contracts and price rises 5 points. That's 5 ÷ 0.25 = 20 ticks. At $12.50 a tick, that's 20 × $12.50 = $250 per contract, or $500 across 2 contracts. The same 5-point move against you loses $500. Notice how quickly it adds up — that's leverage, and it's exactly why sizing matters more in futures than almost anywhere else.
Sizing a futures trade by risk
The position-sizing logic is identical to stocks — risk a fixed slice of your account — but you convert your stop distance into ticks first. Steps:
- Decide your dollar risk (e.g., 1% of a $10,000 account = $100).
- Measure your stop distance in ticks (a 1-point ES stop = 4 ticks).
- Multiply ticks by tick value for risk per contract (4 × $12.50 = $50).
- Divide your dollar risk by risk per contract ($100 ÷ $50 = 2 contracts), then floor.
This is where micro contracts earn their keep. On the same $100 risk with a 1-point stop, full-size ES ($50/contract risk) lets you trade 2 contracts — coarse. Micro ES risks $5 per contract on that stop, so you could size to 20 micros and fine-tune from there. Micros let smaller accounts size precisely instead of being forced into positions that are too big.
Run your contract's numbers
Before you place a futures trade, know exactly what a tick is worth and how many contracts your risk allows. The futures profit calculator turns any entry/exit into ticks and dollars, and the futures position size calculator sizes the trade from your account risk with the tick math handled for you.