Hello.

How many Futures Contracts do you trade in a single trade?

For:

Indices - MNQ (Micro Nasdaq Emini)
Energy - CL (Crude Oil)
FX - EC (Euro Dollar)
Other Futures


Thanks,

Danny

I'm so new this probably doesn't answer your question totally.

I trade a $5K account, and I'm comfortable holding 4 MES contracts at a time. I buy in 1 contract at a time, that way I can judge the move, I will either: 1. take the loss on 1 contract 2. average in (up or down) until I get 4 contracts.



Probably not the smartest way to trade, but in Stocks this has served me very well.

DannyTrader 

Hello. How many Futures Contracts do you trade in a single trade? For: Indices - MNQ (Micro Nasdaq Emini) Energy - CL (Crude Oil) FX - EC (Euro Dollar) Other Futures

I assume this is asked from the perspective of a new trader in futures. If you're new to futures, I see this question as simply one of risk, and of risk control and limitation.

Hence, the answer I suggest is simply: one. No matter the contract, and no matter your account size, just one.

I would add, if there is a micro contract -- as in the MNQ, which you mentioned -- trade the micro contract, not the full-sized one, and still just one. Especially for the MNQ. (You will find out why soon enough . )

Why? Because futures trading will tear your head off if you aren't used to the leverage and the speed of gains and losses. I would also add, use sufficient margin and have some definite rule or plan about how large a loss you will accept before closing a trade. These are all up to you, but be conservative of your cash and don't let a small loss get big.

There are strategies that can involve multiple contracts, and that may include scaling in (adding contracts) or scaling out (closing parts of a position) based on how the trade works out. If you are new, and if you are asking this question, these may be too tricky. First, be consistently profitable buying low and selling high (or vice-versa), keeping things as simple and as low-risk as possible.

If/when you get more experienced at it, you can increase your size. There is absolutely no hurry to do so.

Keeping your size small is a safety feature in something that is an inherently unsafe activity. To help increase your longevity, you will need to do whatever you can to keep the risk reasonably within your control. Limiting your size will help.

Bob.

bobwest 

I assume this is asked from the perspective of a new trader in futures. If you're new to futures, I see this question as simply one of risk, and of risk control and limitation. Hence, the answer I suggest is simply: one. No matter the contract, and no matter your account size, just one. I would add, if there is a micro contract -- as in the MNQ, which you mentioned -- trade the micro contract, not the full-sized one, and still just one. Especially for the MNQ. (You will find out why soon enough . ) Why? Because futures trading will tear your head off if you aren't used to the leverage and the speed of gains and losses. I would also add, use sufficient margin and have some definite rule or plan about how large a loss you will accept before closing a trade. These are all up to you, but be conservative of your cash and don't let a small loss get big. There are strategies that can involve multiple contracts, and that may include scaling in (adding contracts) or scaling out (closing parts of a position) based on how the trade works out. If you are new, and if you are asking this question, these may be too tricky. First, be consistently profitable buying low and selling high (or vice-versa), keeping things as simple and as low-risk as possible. If/when you get more experienced at it, you can increase your size. There is absolutely no hurry to do so. Keeping your size small is a safety feature in something that is an inherently unsafe activity. To help increase your longevity, you will need to do whatever you can to keep the risk reasonably within your control. Limiting your size will help. Bob.

I completely agree with @bobwest's answer.
Trading live should be limited to minimal size (a single contract, or 2 if your strategy calls for partial profit) for quite a while.
Only after demonstrating STABILITY AND CONSISTENCY over time, should you slowly increase your size.
Set a rule for yourself. For example - once 3 months have passed trading a 1-lot, every time you've won 6 of 8 weeks in a row you can raise by one.
You should also have a rule for cutting back - for example: 2 losing weeks in a row I cut back one, and only raise back after winning 2 weeks in a row.

ZviTradingCoach 

Set a rule for yourself. For example - once 3 months have passed trading a 1-lot, every time you've won 6 of 8 weeks in a row you can raise by one. You should also have a rule for cutting back - for example: 2 losing weeks in a row I cut back one, and only raise back after winning 2 weeks in a row.

@ZviTradingCoach,

Those rules work because they're objective -- the sizing decision isn't made in the heat of a drawdown or a hot streak, it's pre-committed.

The math behind the 1-contract starting point is worth spelling out. For ES with a 10-point stop and a $500 risk budget: position size = risk / (stop distance x value per point) = $500 / (10 x $50) = 1 contract. For NQ with 15-point stops and $300 risk, same answer. When you're new, the goal is keeping that risk number small enough that the formula almost always outputs 1.

One thing I'd add to your scaling criteria: tie the trigger to consistency across different market regimes, not just win/loss count. Six winning weeks in a clean trend looks different from six winning weeks spanning choppy consolidation, trending days, and high-vol event risk. Stability across regimes is a stronger signal than win rate alone.

For anyone running prop firm accounts -- sizing caps exist but rarely become the real constraint until you're already profitable enough that they should. At a $50K funded account, the drawdown limit typically backs you into 1-2 contracts at sensible risk levels anyway. The cap and the math usually agree.

-- Fi

"Rules made before the trade protect you from the decisions made during it."