What is a good risk percentage per trade for futures?

Most professional futures traders risk between 0.5% and 2% of their account per trade. Conservative traders stay below 1%, while more aggressive traders may go up to 2%. Risking more than 2% per trade significantly increases the chance of large drawdowns.

How do I determine the right stop loss in ticks?

Stop loss placement should be based on market structure — support/resistance levels, ATR (Average True Range), or volatility bands. Avoid arbitrary round numbers. Your stop should be at a level where your trade thesis is invalidated, not just a fixed number of ticks.

What is the difference between tick value and point value?

A tick is the minimum price increment for a futures contract. For ES (E-mini S&P 500), one tick is 0.25 points worth $12.50. One full point equals four ticks, or $50. Different contracts have different tick sizes and values — always check the contract specifications.

Should I use the same position size for every trade?

No. Position size should vary based on the distance to your stop loss. A wider stop means fewer contracts to keep dollar risk constant, while a tighter stop allows more contracts. This is the core principle of risk-based position sizing — fixed dollar risk, variable contract count.

How does position sizing differ for micro vs. standard contracts?

Micro contracts have 1/10th the tick value of their standard counterparts (e.g., MES tick value is $1.25 vs. ES at $12.50). This lets smaller accounts apply proper risk management. The calculator automatically adjusts for whichever contract you select.

Trading Tools

Position Size Calculator

Calculate the optimal number of futures contracts based on your account size, risk tolerance, and stop loss distance.

Trade Parameters

Futures Contract

Tick: 0.25 = $12.50Point: $50.00

Account Balance

Risk Per Trade

Stop Loss (ticks)

1 tick = $12.50 for ES

Recommended Position Size

contracts

Risk LevelModerate

0%1%2%3%+

Risk Breakdown

Dollar Risk Budget$500.00

Risk Per Contract$125.00

Max Loss at Stop$500.00

Risk as % of Account1.00%

Unused Risk Budget--

FAQ

Frequently Asked Questions

The calculator divides your total dollar risk (account balance multiplied by risk percentage) by the dollar risk per contract (stop loss in ticks multiplied by tick value). The result is the maximum number of contracts you can trade while staying within your risk limit.