Micro futures — Contracts sized at one tenth of their E-mini equivalent, giving a proportionally smaller tick value and margin requirement.
How micro futures works in prop trading
Micro contracts track the same underlying as their E-mini counterparts at one tenth the size. The Micro E-mini S&P is $1.25 a tick against the E-mini's $12.50, with the same tick size and the same price. They exist to let smaller accounts take proportionally sized risk, and they are the single most useful tool a prop trader has for surviving a tight drawdown.
Against a $2,000 drawdown allowance, micros turn an unworkable strategy into a workable one: a 20-tick stop costs $25 per contract instead of $250, which means a normal losing streak consumes a fraction of the budget. Most firms count ten micros as one full-size contract against the position cap, so trading micros also leaves far more headroom under the limit.
Key points
- One tenth the tick value and margin of the equivalent E-mini, at the same tick size and price.
- Usually counted at one tenth of a full-size contract against a prop firm's position cap.
- The practical way to run a normal stop distance against a tight prop drawdown.
- Commission per contract is lower in absolute terms but higher relative to the value traded.
Example
A 20-tick stop costs $250 on one E-mini S&P contract and $25 on one Micro E-mini — the difference between 12.5% and 1.25% of a $2,000 drawdown.
Also known as
- micro contract
- micro e-mini
- MES MNQ
Frequently asked questions
Should I trade micros on a prop account?
For most traders on a $25,000 to $50,000 account with a tight drawdown, yes. Micros let you keep a stop where your strategy needs it rather than where the drawdown allows, which is the difference between trading your method and improvising a smaller one.
Do micro contracts count against the prop firm contract limit?
Yes, normally at one tenth of a full-size contract, so ten micros use the same allowance as one E-mini. A small number of firms count them one-for-one, which is much more restrictive — check the program terms.
Put this into practice
Micro futures is described here as a plain-language educational definition. Firms, platforms, and account programs may apply different conditions or calculations. Verify the current official terms before using this definition to make an account decision.