Price distance
4 points × $5 per point = $20 per contract. This is not the whole planned loss yet.
OPENRANGE / FUTURES POSITION SIZING FOR BEGINNERSWork out the loss.
Work out the loss.
Then the quantity.
Futures position sizing connects price distance to dollars and whole contracts. Start with the exercise assumptions—not how many contracts a platform lets you select.
Public lesson preview · Private member curriculum · Education, not trade signals
First, read the contract value.
For one Micro E-mini S&P 500 futures contract, MES, one index point is $5. An outright tick is 0.25 points, worth $1.25. Do not substitute another contract’s value because the chart looks similar.
Further reading: CME Micro E-mini futures contract specifications. Checked September 26, 2026.
This fictional exercise supplies a four-point stop distance, $2 round-trip costs per contract, a $1.25 total adverse-slippage allowance per contract and a $50 planning allowance. They are arithmetic inputs, not a recommendation for anyone’s account.
Calculate one contract before dividing.
Include the assumptions
$20 + $2 costs + $1.25 slippage allowance = $23.25 per contract. Actual slippage can exceed the allowance.
Round down
$50 ÷ $23.25 is about 2.15. At most 2 whole contracts fit this exercise, totaling $46.50. Three would total $69.75.
Change the allowance. Keep the method.
Now use a $20 classroom allowance with the same $23.25 per-contract planned loss.
How many whole contracts fit?
Zero. One exceeds the supplied allowance. Rounding up changes the constraint instead of solving the exercise. Do not move the stop solely to force a desired quantity into the calculation.
This does not check margin requirements, account restrictions or every possible loss scenario. Margin is collateral, not a substitute for planned-loss arithmetic. A smaller contract does not make leveraged trading risk-free.
After a simulated fill, calculate the result from actual entry and exit prices and costs. If those prices already include adverse slippage, do not subtract the planning allowance again as though it were a separate bill.
Inside the academy, connect arithmetic to order state and review. The useful skill is explaining the inputs—not memorizing “two contracts” from one example.
Distinguish planned amounts from actual outcomes →Further reading: CME: position-sizing principles. Checked September 26, 2026.
TAKE THIS INTO THE ACADEMY
Understand the size instead of copying it.
Learn ticks, points, costs and changed-number sizing exercises. Identify the instrument and explain why an example fits—or why the answer is no trade.
- Convert futures price distance into dollars.
- Include stated costs and slippage allowance once.
- Round down and recognize when zero contracts fit.
Understand it.
Then practice it.
Explore the relevant module and the connected course before choosing access. The full academy stays behind a member login.
Explore the academy’s sizing lessons →Try the public sample lesson first →
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Clear questions. Useful answers.
Can this tell me what to trade with my savings?
No. These are fictional inputs, not personalized advice or an affordability assessment. A planning allowance does not cap every possible loss.
Why is zero useful?
It shows the proposed exercise does not fit its stated constraint. Recognizing that mismatch is part of the lesson, not a failure to find a trade.
FROM ONE ANSWER TO A CONNECTED EDUCATIONKeep the question.
Keep the question.
Build the understanding.
See how this topic fits into foundations, guided practice and deeper study. Start with the part you can explain—not the one with the loudest promise.
Show me the complete academy →Course completion does not guarantee profits, evaluation success or readiness to trade real money.
FIND YOUR STARTING POINTBig ambition.
Big ambition.
A clear first step.
Explore the foundations, map out two weeks of study, or see how futures, risk and strategy connect.