Position Size for NQ, ES and Gold: The Exact Math

Most sizing mistakes don't come from bad maths. They come from doing it backwards: picking a size because it feels right, then placing a stop that fits the size. Done properly, the order is fixed: decide how much you will lose if you're wrong, find where the trade is wrong, and let those two numbers set the size.

This guide gives you the formula, the point values for the markets most traders journal, and worked examples you can check against your own platform.

The formula

Position size = dollar risk ÷ (stop distance in points × dollars per point)

Then round down to a size your platform accepts.

Three inputs:

1. Dollar risk (1R): the amount you accept losing on this trade. A fixed amount or a small, fixed percentage of the account.
2. Stop distance: from your entry to the price where the setup is invalid. This comes from the chart, not from your wallet.
3. Dollars per point: a property of the contract.

Point values

For YM, RTY, crude oil, the Micro versions and the new E-nano contracts, see our full futures tick values chart, and E-nano futures explained for NES and NNQ.

Futures values come from CME Group's contract specifications. For gold CFDs and spot, contract sizes vary by broker; a 100-ounce standard lot is common and gives $100 per $1.00 move, but always check your symbol's specification in MetaTrader before you trust a calculator.

Worked examples on a $50,000 account

Assume you risk 0.5% per trade: $250.

NQ with an 18-point stop

• One NQ: 18 × $20 = $360. That's more than $250, so zero NQ.
• One MNQ: 18 × $2 = $36. $250 ÷ $36 = 6.94, so 6 MNQ, risking $216.

This is the most common situation for smaller accounts: the mini doesn't fit, the micro does. Taking one NQ anyway would make this trade 1.44 times your normal risk.

ES with a 6-point stop

• One ES: 6 × $50 = $300. Too large, so zero ES.
• One MES: 6 × $5 = $30. $250 ÷ $30 = 8.33, so 8 MES, risking $240.

XAUUSD with a $4.00 stop

• One standard lot: $4.00 × $100 = $400.
• $250 ÷ $400 = 0.625, so 0.62 lots, risking $248.

XAUUSD with a $12.00 stop

• One lot: $12.00 × $100 = $1,200.
• $250 ÷ $1,200 = 0.208, so 0.20 lots, risking $240.

The wider stop didn't add risk. It cut the size by two thirds. That's the whole point of sizing from the stop.

Gold futures with a $4.00 stop

• One GC: $4.00 × $100 = $400. Too large for $250.
• One MGC: $4.00 × $10 = $40. $250 ÷ $40 = 6.25, so 6 MGC, risking $240.

Mixing minis and micros

With a larger budget, combine contract sizes to get close to your target risk. Say 1R is $1,000 and your NQ stop is 18 points:

• One NQ risks $360. Two NQ risk $720. Three would be $1,080, over budget.
• The remaining $280 ÷ $36 per MNQ = 7.8, so add 7 MNQ ($252).
• Total: 2 NQ + 7 MNQ = $972 at risk.

Many platforms let you place both orders at once with the same stop and target. If yours doesn't, it's simpler to trade only MNQ: 27 MNQ would risk $972 too. For when to switch from micros to minis at all, see micro vs mini futures.

Quick lookup: MNQ and NQ

Contracts that fit a given dollar risk, rounded down:

For MES, divide your risk by (stop × $5). For ES, by (stop × $50).

Fixed dollars or fixed percentage?

There are two common ways to set 1R, and both work if you stick to them.

Fixed dollar risk. You risk the same amount, say $250, on every trade until you deliberately change it, often once a month or after a set number of trades. It's simple, it keeps your R statistics clean, and it's the natural choice on prop accounts where the drawdown, not the balance, is what matters.

Fixed percentage risk. You risk, say, 0.5% of the current balance. Your size grows as the account grows and shrinks during drawdowns, which slows losses when things go badly. The cost is a little more arithmetic before every trade, and dollar results that are harder to compare across months.

Whichever you choose, avoid changing size because of your last trade. Doubling after a loss to "get it back" and doubling after a win because you "feel it" are both ways of letting emotion set risk. If you want size to vary, tie it to something you decide before the trade, such as the grade of the setup: full size for A setups, half size for B, none for anything lower.

When to change your 1R

A sensible rule is to review your risk at fixed intervals, not after individual trades:

• After every 50 trades, or at the end of each month.
• After a drawdown of a set size, for example −10R, when you might cut 1R by half until you recover half of it.
• When you move from evaluation to funded account, where the rules and the drawdown may differ.

Write the rule down. A size rule that only exists in your head tends to bend on bad days.

Sizing inside a prop firm account

On a prop account, base 1R on the drawdown, not on the account balance. A 50K evaluation with a $2,000 drawdown is effectively a $2,000 account.

• 0.5% of $50,000 is $250, which is 12.5% of the drawdown: eight full losses and the account is gone.
• $150 per trade is 7.5% of the drawdown: about 13 full losses.

Firms also cap your size. When we checked in October 2026, Topstep's 50K Trading Combine allowed up to 5 contracts or 50 micros, and Apex's 50K EOD evaluation allowed 6 contracts. Those are ceilings, not targets: most of the time your stop and your 1R should keep you far below them. More on this in how to pass a prop firm challenge.

Ticks, pips and other traps

Ticks vs points. NQ moves in 0.25-point ticks, so an 18-point stop is 72 ticks. If your platform shows the stop in ticks, divide by 4 to get points before using the point values above.

The word "pip" on gold. Brokers and educators use "pip" for $0.01, $0.10 or even $1.00 on XAUUSD. Work in dollars of price movement instead. A $4.00 stop is a $4.00 stop on every platform.

Spreads and commissions. Your fill is rarely exactly at your price. On gold, the spread widens around news and at the daily rollover. On micros, round-trip commissions are a bigger share of a small R. If fees regularly add 0.05R to 0.1R per trade, include them in your plan.

Gaps and slippage. A stop order doesn't fix your exit price. Around major releases, fills can come well beyond the stop. Some traders halve size or stand aside for a few minutes around news; your economic calendar tells you when.

Rounding up. It feels harmless to turn 6.9 into 7. Over a hundred trades it means every loss is bigger than your plan, and your R statistics stop being honest.

A 30-second routine before every entry

1. Write your 1R in dollars (the same number as yesterday, unless you've deliberately changed it).
2. Mark your stop on the chart where the setup is invalid.
3. Read the stop distance in points.
4. Divide: 1R ÷ (distance × $ per point). Round down.
5. If the result is zero, the trade is too wide for your account. Skip it or use the micro.

If the routine feels slow, automate it. TJ's Rate It! suggests a size from your risk settings and the setup's grade, with smaller size for weaker grades. Log It! then calculates risk, R and P&L from the prices, with point values built in for NQ, MNQ, ES, MES, GC, MGC and XAUUSD. You can try both in the demo.

Why it matters

Consistent sizing is what makes the rest of your journal meaningful. If every trade risks the same 1R, your results in R tell you about your strategy and your execution. If size drifts with your mood, they mostly tell you about your mood. Once sizing is fixed, R-multiple explained shows how to turn your results into expectancy.

Not financial advice. Futures, CFDs and spot gold carry a high risk of loss, and the examples above illustrate arithmetic, not trade ideas.