By Marco BösingWhat Are Micro Futures?
Micro Futures -- officially called Micro E-mini Futures -- are scaled-down versions of the popular E-mini futures contracts. Launched in 2019 by the CME Group, they represent one-tenth the contract size of an E-mini. A single tick in MNQ (Micro E-mini Nasdaq-100) moves $0.50 instead of $5.00 in NQ. This makes futures trading accessible to traders with smaller accounts, without sacrificing the advantages of a regulated, centralized exchange.
I recommend every beginner start with Micro Futures. You trade at the exact same market as institutional participants, see the same order book, the same order flow, and the same market depth. The only difference: your risk per tick is one-tenth. That gives you the room to make mistakes and learn from them without destroying your account.
How Do Micro Futures Work?
Micro Futures work identically to their full-size E-mini counterparts. You post a margin (security deposit) that is significantly lower than for the E-mini. At many brokers, intraday margin for MNQ is under $100, while NQ requires $500 to $2,000. Daily valuation is handled through the settlement price via mark-to-market.
The Most Popular Micro Futures
| Contract | Symbol | Tick Size | Tick Value | Approx. Contract Value |
|---|---|---|---|---|
| Micro E-mini S&P 500 | MES | 0.25 | $1.25 | ~$27,000 |
| Micro E-mini Nasdaq-100 | MNQ | 0.25 | $0.50 | ~$20,000 |
| Micro E-mini Dow Jones | MYM | 1.00 | $0.50 | ~$21,000 |
| Micro E-mini Russell 2000 | M2K | 0.10 | $0.50 | ~$10,000 |
The contract values change with the current price level. The table shows reference values for orientation. What matters is the tick value: it determines how much you gain or lose per tick of movement. For MNQ, that is $0.50 per tick; for MES, $1.25. For NQ (E-mini), it would be $5.00 per tick, ten times the MNQ.
Expiration dates are identical to the E-minis: quarterly in March, June, September, and December. Trading hours are the same as well (Sunday 6:00 PM to Friday 5:00 PM Eastern Time, with a 15-minute break at 4:15 PM). You trade the same market at the same time, just with a smaller footprint.
Micro Futures in Practice
In practice, I use Micro Futures for two scenarios: learning and precise scaling. For beginners, they are the perfect entry point because you gain real market experience without risking significant capital. A 50-tick losing trade in MNQ costs you $25. The same trade in NQ costs $250. Over a month with 20 trades, this difference adds up enormously.
Even for experienced traders, Micro Futures have a purpose. If you trade two contracts in the E-mini and want to close one at Target 1, you are left with a single contract. With Micro Futures, you can instead trade 20 MNQ and scale more flexibly, for example closing 10 at Target 1, 5 at Target 2, and letting 5 run at breakeven.
One point that is often overlooked: although Micro Futures deliver the same market data as E-minis, the liquidity in the Micro order book is somewhat thinner. For day trading with one to ten contracts, this is irrelevant. But if you try to place 100 MNQ contracts at once, slippage can become an issue. This problem generally resolves itself once you are large enough for such positions and switch to NQ anyway.
Commissions per contract are slightly lower for Micro Futures in absolute terms compared to E-minis, but higher relative to the tick value. A round-turn trade in MNQ typically costs $0.50 to $1.50 in commissions. With a tick value of $0.50, commissions represent a significant proportion. For NQ with $5.00 per tick, the $2 to $4 commission is barely noticeable. Factor this into your strategy calculations.
For a detailed comparison and practical tips, see our guide to Micro Futures trading.
Common Mistakes with Micro Futures
Trading too many contracts because they are "cheap": Micro Futures are smaller, but 20 MNQ contracts equal two NQ contracts. If you start with Micro Futures and immediately trade 20 contracts, you have defeated the purpose of the smaller instrument. Start with one or two contracts.
Ignoring the commission structure: Relative to the tick value, commissions on Micro Futures are higher than on E-minis. On very short-term scalps, commissions can eat a large portion of the profit. Calculate beforehand whether your strategy remains profitable after commissions.
Dismissing Micro Futures as "not real trading": Micro Futures trade on the same market with the same data. The psychological component is reduced with smaller risk, but the market experience you gain is real and directly transferable to E-minis.
FAQ
Are Micro Futures the same as E-minis?
No, but they track the same underlying. A Micro E-mini is one-tenth the size of an E-mini. MNQ tracks the same Nasdaq-100 index as NQ, with the same tick size (0.25 points), but a tick value of $0.50 instead of $5.00. Trading hours and expiration dates are identical.
How much capital do I need for Micro Futures?
Technically, you can start with under $500 at some brokers. However, I recommend at least $2,500 to $5,000 to provide sufficient buffer for losing streaks and avoid trading under pressure. Never risk more than 1% to 2% of your account per trade.
When should I move from Micro Futures to E-minis?
When you have been consistently profitable for at least three months and have an account large enough to handle the tenfold risk. The switch is not a prestige issue but a question of capital adequacy and mental readiness. Many successful traders stay with Micro Futures because the scaling options fit their account size better.