How position size works
Position sizing links your stop to your dollar risk. Each futures contract has a fixed tick size and tick value set by the exchange. Multiply the stop distance in ticks by the tick value to get the loss per contract. Then divide your dollar risk by that figure and round down.
A stop is usually quoted in points, which is a price move of one full index or price point. For ES one point is four ticks, so a 4-point stop is 16 ticks. The calculator converts points to ticks for you. You can also enter the stop directly in ticks.
Worked examples
Micro Nasdaq (MNQ) with $200 risk and a 20-point stop: 20 points is 80 ticks, and each tick is worth $0.50, so the loss per contract is $40. $200 ÷ $40 = 5 contracts, with an actual risk of $200.
E-mini S&P (ES) with $200 risk and a 4-point stop: 16 ticks at $12.50 is $200 per contract. That gives exactly 1 contract. A wider stop or a smaller contract is needed for more size.
If the loss per contract is larger than your risk, the calculator shows 0 contracts. Trade a smaller contract, widen your risk budget, or tighten the stop.
Gold example
MGC with a $200 risk and a 5-point stop: 5 ÷ 0.10 = 50 ticks. At $1.00 per tick that is $50 per contract. $200 ÷ $50 = 4 contracts, with an actual risk of $200.
Crude oil example
CL with a $200 risk and a 0.50-point stop: 0.50 ÷ 0.01 = 50 ticks at $10.00 per tick is $500 per contract. $200 is less than $500, so the calculator shows 0 contracts. Using MCL instead, the same stop is 50 ticks at $1.00, or $50 per contract, which gives 4 contracts.
Common mistakes
- Mixing points and ticks. For ES and NQ a point is four ticks, but for crude a tick is one cent, so a 0.50-point stop is 50 ticks. Match the unit to your platform.
- Rounding up. The calculator rounds down so that actual risk stays inside your budget.
- Ignoring slippage and commissions. The result uses the stop and tick value only. Leave an allowance if fills are likely to be worse than the stop.
Contract specifications (CME)
| Contract | Tick size | 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 |
| CL | 0.01 | $10.00 | $1,000 |
| MCL | 0.01 | $1.00 | $100 |
| GC | 0.10 | $10.00 | $100 |
| MGC | 0.10 | $1.00 | $10 |
Step by step
- Choose the contract and check its tick size and tick value in the table below.
- Enter the dollar amount you accept losing on the trade.
- Enter the stop distance and set the unit to points or ticks, matching how your platform quotes the stop.
- Read the contract count. The actual risk line shows what that count really risks, which is never more than your budget.
Position size is the last step, not the first. Decide where the stop belongs from your setup, then size the trade. Sizing from a convenient contract count and then moving the stop tends to produce inconsistent risk.
Related calculators
Frequently asked questions
How is position size calculated?
Risk per contract = stop in ticks × tick value. Contracts = floor(dollar risk ÷ risk per contract).
What is the difference between ES and MES?
MES has the same tick size (0.25) but a tick value of $1.25 instead of $12.50, so ten MES equal one ES in exposure.
Does the calculator include slippage?
No. It uses your stop distance and the contract tick value only. Add an allowance yourself if you expect worse fills.
Is this financial advice?
No. This is an educational arithmetic tool.