Futures Trading for Beginners: How ES, NQ, Gold and Oil Work
A future is a standardized contract traded on a regulated exchange (in the US, mostly CME Group) that tracks the price of an asset: the S&P 500, the Nasdaq 100, gold or crude oil. Each contract has a fixed size, so every point of movement is worth an exact number of dollars: on the E-mini S&P 500, $50 per point. It is the instrument of futures prop firms and of professional day trading in the US.
Tick, point and value of the most traded contracts
| Contract | Point value | Tick | Tick value |
|---|---|---|---|
| ES · E-mini S&P 500 | $50 | 0.25 | $12.50 |
| MES · Micro E-mini S&P 500 | $5 | 0.25 | $1.25 |
| NQ · E-mini Nasdaq-100 | $20 | 0.25 | $5.00 |
| MNQ · Micro E-mini Nasdaq-100 | $2 | 0.25 | $0.50 |
| GC · Gold (COMEX) | $100 | 0.10 | $10.00 |
| MGC · Micro Gold | $10 | 0.10 | $1.00 |
| CL · WTI Crude Oil | $1,000 | 0.01 | $10.00 |
| MCL · Micro WTI Crude Oil | $100 | 0.01 | $1.00 |
Example: buy 1 MES and the S&P 500 rises 10 points, you make 10 × $5 = $50; with 1 ES, $500. Micros (MES, MNQ, MGC, MCL) are one tenth of the standard contract and let small accounts size risk properly.
Margin and daily settlement
To open a future you post margin set by the exchange (your broker may ask for more). Every day the result is settled: gains are credited and losses debited. Futures have no negative balance protection: a big gap can leave the account negative.
Expiry and rollover
Futures expire. Index futures (ES, NQ and their micros) expire every quarter: March, June, September and December. Gold and oil have more frequent expiries. To keep a position you close it in the expiring contract and reopen it in the next one (the roll). Almost all volume sits in the nearest contract.
Trading hours
CME futures trade almost 24 hours on its electronic platform, from Sunday evening to Friday afternoon New York time, with a one-hour daily break. Index futures are most liquid during the New York stock market session, 9:30 a.m. to 4:00 p.m. ET.
How many contracts
Contracts = risk ÷ (stop in points × point value). With $200 at risk and an 8-point stop on the S&P 500: 200 ÷ (8 × 50) = 0.5 ES contracts, which don’t exist; with MES, 200 ÷ (8 × 5) = 5 contracts. Futures calculator · futures prop firms.
Contract specifications from CME Group. Margins change with volatility: check them with your broker. Information only, not investment advice.
Frequently asked questions
What is a futures contract?
A standardized agreement to buy or sell an asset on a future date at a price set today. It trades on a regulated exchange such as CME, and most traders close it before expiry.
How much is one E-mini S&P 500 point worth?
$50 per contract; the minimum tick (0.25 points) is worth $12.50. On the micro (MES), one point is $5.
What are micro futures?
One-tenth versions of the standard contract (MES, MNQ, MGC, MCL), designed for small accounts and finer risk control.
Can I lose more than I deposit with futures?
Yes: futures have no negative balance protection. A sharp move can leave the account negative and you would owe the difference.