Micro futures
Micro futures are smaller-sized versions of standard futures contracts, typically one-tenth the size, letting traders manage risk with far less capital per tick.
A micro futures contract is a scaled-down version of a standard ("mini") futures contract, usually one-tenth the notional size and tick value. The Micro E-mini S&P 500 (MES), for instance, is one-tenth the size of the E-mini S&P 500 (ES): a one-point move is worth $5 on MES versus $50 on ES.
Micros are popular with prop firm traders because they let you take positions that fit comfortably inside tight daily drawdown and maximum drawdown limits. On a small evaluation account, trading one or two micro contracts gives you room to be wrong without breaching, where a single full-size contract might wipe out the buffer in a few ticks.
Common micro products include MES (S&P 500), MNQ (Nasdaq 100), MYM (Dow), M2K (Russell 2000), MGC (gold) and MCL (crude oil). Because each tick is cheaper, micros are also the standard tool for building up size gradually under a firm's scaling plan.
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