Futures basics · November 2, 2026
Futures trading basics: contracts, ticks and sessions
New to futures or switching from stocks or forex? Here is what a contract actually is, what each tick is worth on the indexes prop traders trade most, and how prop firm rules change the picture. Education only — not financial advice.
What you are actually trading
A futures contract is a standardized agreement to buy or sell an asset at a fixed price on a fixed date. In practice, prop traders almost never hold to that date. You are trading the price movement of the contract, closing every position before delivery, and following your firm's rules on top of the exchange's.
On a prop firm account the money is simulated: evaluation and funded-sim accounts trade real market data with simulated fills. Your job is to trade well inside the firm's loss rules and payout conditions, because those — not exchange margin — decide whether you get paid.
Points, ticks and what each move is worth
CME equity index futures move in minimum increments of 0.25 index points, called ticks. Each contract has a fixed dollar value per point, so every tick has an exact dollar value:
| Contract | Name | $ per point | $ per tick (0.25) |
|---|---|---|---|
| ES | E-mini S&P 500 | $50.00 | $12.50 |
| MES | Micro E-mini S&P 500 | $5.00 | $1.25 |
| NQ | E-mini Nasdaq-100 | $20.00 | $5.00 |
| MNQ | Micro E-mini Nasdaq-100 | $2.00 | $0.50 |
A 10-point ES move is $500 per contract. The same move on MES is $50. That difference is why most traders start evaluations on micros — the math is identical, but one losing trade costs ten times less. See the micros vs minis breakdown for the full comparison.
Trading sessions
CME equity index futures trade nearly around the clock on Globex, opening Sunday evening and running through Friday afternoon with a short daily maintenance break. That does not mean every hour trades the same: liquidity and volatility concentrate around the US cash open and major news releases. Trading thin overnight hours with a tight daily loss limit is a common way beginners fail evaluations — see the best times to trade ES and NQ.
How prop firm rules change the picture
In a personal account, your risk ceiling is your own capital and exchange margin. On a prop account, the ceiling is the firm's drawdown and daily loss rules — and those numbers are usually much smaller than the advertised account size. A "50K account" is not $50,000 you can lose; the drawdown allowance is what matters.
Before your first trade, know three numbers from your firm's card: the drawdown method (trailing or end-of-day), the daily loss limit if there is one, and the profit target. The drawdown guide explains the two methods and why intraday trailing is the strictest.
Where to go next
FAQ
What is a futures contract in simple terms?
A standardized agreement to buy or sell an asset at a set price on a set date. Prop traders rarely hold to expiry — they trade the price movement and close positions before delivery, using the firm's platform and rules.
How much is one tick on ES and NQ?
CME equity index futures tick in 0.25-point increments. ES is $50 per point, so one tick is $12.50. NQ is $20 per point, so one tick is $5.00. The micro versions (MES and MNQ) are one-tenth of that.
What is the difference between a mini and a micro contract?
Micros are exactly one-tenth the size of minis. MES moves $5 per point versus ES's $50, and MNQ moves $2 per point versus NQ's $20 — the same chart, one-tenth the dollar risk.
When can I trade futures?
CME equity index futures trade nearly around the clock on Globex from Sunday evening to Friday afternoon, with a short daily maintenance break. Session timing still matters: see the best-times-to-trade guide.
Do prop firms use real money?
No. Evaluation and funded-sim accounts trade simulated fills in real market data. Your payout comes from the firm's rules, which is why drawdown, consistency and payout terms matter more than the headline account size.
Free 2026 Futures Prop Firm Cheat Sheet
The key firm rules on one page, before you pick your next account.
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