From CFDs to futures - position sizing

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Updated April 14, 2018

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From CFDs to futures - position sizing

OMWF · 2018-04-14T05:51:05-04:00

Hi, I'd like someone to help me make the switch to futures trading, but I'm unsure about whether I can afford it. Currently if I trade "Wall St" CFD, I can use the $1 contract and that gives me an ability to alter my position size with great flexibility, depending on how far away the target is. But if I trade ES, 1 tick = 12.5US, I fear I won't be able to take trades where the target is more than say 100 points away, otherwise I risk too much of my account. Say I have an account of 50k, and I want to risk 4% per trade, what sort of targets would be permissable? Can I make this work for ES and CL trading? Thanks.

April 14th, 2018, 05:51 AM	#1 (permalink)
OMWF Australia Elite Member Experience: Beginner Platform: Tradingview, Amibroker Trading: ASX Posts: 64 since Apr 2018 Thanks Given: 60 Thanks Received: 29	Hi, I'd like someone to help me make the switch to futures trading, but I'm unsure about whether I can afford it. Currently if I trade "Wall St" CFD, I can use the $1 contract and that gives me an ability to alter my position size with great flexibility, depending on how far away the target is. But if I trade ES, 1 tick = 12.5US, I fear I won't be able to take trades where the target is more than say 100 points away, otherwise I risk too much of my account. Say I have an account of 50k, and I want to risk 4% per trade, what sort of targets would be permissable? Can I make this work for ES and CL trading? Thanks.