How to calculate futures position size from your stop loss
Decide how much you can lose on a trade, place the stop where the market says it belongs, and let the size follow. Here is the formula, the tick values you need, and a calculator.
The formula
Position size for futures is three numbers:
- Risk per trade — the most you accept to lose if the stop is hit, in dollars (e.g. $300, or 1% of a $30,000 account).
- Stop distance in ticks — from your entry to your stop, divided by the contract's tick size.
- Tick value — how many dollars one tick is worth for one contract.
contracts = floor( risk ÷ (stop ticks × tick value) )
Always round down. Rounding up, even by one contract, means a stop-out costs more than you decided — the opposite of what position sizing is for.
Tick values of the main CME contracts
| Contract | Tick size | Tick value | 1 point |
|---|---|---|---|
| MES — Micro E-mini S&P 500 | 0.25 | $1.25 | $5 |
| ES — E-mini S&P 500 | 0.25 | $12.50 | $50 |
| MNQ — Micro E-mini Nasdaq-100 | 0.25 | $0.50 | $2 |
| NQ — E-mini Nasdaq-100 | 0.25 | $5.00 | $20 |
| MYM / YM — Dow | 1 | $0.50 / $5.00 | $0.50 / $5 |
| M2K / RTY — Russell 2000 | 0.10 | $0.50 / $5.00 | $5 / $50 |
| MCL / CL — WTI Crude Oil | 0.01 | $1.00 / $10.00 | $100 / $1,000 |
| MGC / GC — Gold | 0.10 | $1.00 / $10.00 | $10 / $100 |
Worked examples
MES, $300 risk, 19-point stop
19 points = 76 ticks. 76 × $1.25 = $95 per contract. $300 ÷ $95 = 3.16 → 3 contracts, real risk $285.
MNQ, $200 risk, 40-point stop
40 points = 160 ticks. 160 × $0.50 = $80 per contract. $200 ÷ $80 = 2.5 → 2 contracts, real risk $160.
ES, $300 risk, 8-point stop
8 points = 32 ticks. 32 × $12.50 = $400 per contract. $300 ÷ $400 = 0.75 → 0 contracts. Even one contract is over budget. Switch to the micro: on MES the same stop is $40 per contract → 7 MES, real risk $280. Or skip the trade. Never "round up to one".
Common mistakes
- Fixed size on every trade. Trading "always 2 contracts" means a wide stop risks three times more than a tight one. Your loss should be fixed, not your size.
- Moving the stop to fit the size. The stop goes where the trade idea is wrong; the size adapts to it, never the other way round.
- Confusing points and ticks. On MES one point is four ticks. Mixing them up multiplies the risk by four.
- Doing it by hand under pressure. Calculating size while price is moving is when mistakes happen.
Do it automatically in Quantower
If you trade on Quantower, QT Risk Manager does this calculation on the chart: Shift + click where your stop belongs and the panel shows the distance, the size rounded down and the money at risk, using the instrument's real tick value. If even one contract would exceed your risk, it shows Out of Risk and refuses the order. One more click sends a market order with the stop loss attached at your broker.
Related guides
Trading futures involves substantial risk of loss. This guide is educational and is not financial advice. See the risk disclaimer.