Micro or mini? Size the stop before the position
Contract size should come last, not first. The stop belongs to the trade idea. The dollar ceiling belongs to the trader. Quantity is the whole-contract result that fits between them.
The short answer
Start here
Risk per contract equals stop distance divided by tick size, multiplied by tick value. Whole contracts equal the risk budget divided by risk per contract, rounded down. If the stop is not aligned to an exchange tick, fix the input instead of silently rounding it.
What matters
- Use the actual stop distance, not the distance needed to justify a preferred quantity.
- Compare micro and larger contracts using the same stop.
- Leave room for costs, slippage and gap-through because the formula excludes them.
01
The formula
First calculate the number of ticks in the stop: stop distance divided by tick size. Multiply ticks by tick value to get dollar risk per contract. Divide the member-chosen risk budget by that result and round down to whole contracts.
A result of zero is useful information. It means one contract of that size exceeds the stated budget at that stop. The answer is not to move the stop merely to make the contract fit.
02
Micro and mini are not interchangeable labels
MES and ES share a 0.25 index-point tick, but the tick values differ by a factor of ten. MNQ and NQ do the same. Metals use different tick sizes and values, so copy-pasting an index calculation into gold or silver produces the wrong risk.
Use the exchange specification for the exact symbol. NANO’s calculator currently covers the paired USD contracts for S&P 500, Nasdaq-100, Dow Jones, gold and silver.
03
The common mistake
Do not start with “I want three NQ” and reverse-engineer a stop that fits. That changes the trade thesis to defend a quantity. Place the invalidation point first, then see which contract class fits the chosen dollar ceiling.
Worked example
Assumptions, not a forecastA 12-point Nasdaq stop
- Member-chosen risk budget: $180.
- Stop distance: 12 Nasdaq index points.
- MNQ: 0.25-point tick worth $0.50. NQ: 0.25-point tick worth $5.00.
The stop is 48 ticks. MNQ risks 48 × $0.50 = $24 per contract, so seven whole MNQ contracts use $168. NQ risks 48 × $5 = $240, so zero NQ contracts fit the $180 budget.
The result excludes commissions, fees, slippage, gap-through and any later stop movement. It is arithmetic, not permission to trade seven contracts.
Tool tutorial
Translate the stop inside Risk Coach
- 01
Confirm the focused account and its member-set risk contract.
- 02
Choose the market and micro or larger contract.
- 03
Enter the stop distance exactly on an exchange tick.
- 04
Read whole-contract arithmetic against the stricter of the confirmed per-trade ceiling and remaining open-stop headroom.
Apply the stop to the active account contract
The Pro Contract Sizer keeps exchange specs, the focused account’s confirmed ceilings and currently marked-open stop risk in one calculation.
Pro tool. The destination handles upgrade or early-access status. USD contracts only; exact ticks required.
Evidence boundary
What NANO can and cannot know
NANO does not choose the risk budget, stop or quantity. It does not see broker positions or fills and excludes commissions, slippage, gaps and stop movement.
Primary specification sources
- CME Micro E-mini equity index futures FAQ
- CME E-mini S&P 500 contract specifications
- CME E-mini Nasdaq-100 contract specifications
- CME E-mini Dow contract specifications
- COMEX Micro Gold futures rulebook
- COMEX E-mini Gold futures rulebook
- COMEX Micro Silver futures rulebook
- COMEX E-mini Silver futures rulebook
Common questions
- Why does the calculator round down?
- Futures contracts are whole units. Rounding up would exceed the stated dollar budget.
- Why can the calculator return zero contracts?
- One contract at the entered stop exceeds the stated budget. A smaller contract class, a different risk budget chosen by the trader, or no trade are the honest outcomes. The tool does not move the stop.