How Much Is 1 NQ Futures Contract Worth?
efore trading NQ futures, it’s important to understand how the contract size and tick value work. This knowledge helps you manage your trading capital and risk exposure effectively.
Let’s break down the cost and value of a single NQ futures contract.
Understanding the NQ Futures Contract Size
NQ futures are standardized contracts traded on the Chicago Mercantile Exchange (CME). The value of one NQ futures contract is calculated using the Nasdaq-100 index level.
Formula:
Contract Value = Index Price × Multiplier
Multiplier: $20
For example, if the Nasdaq-100 index is at 15,000:
15,000 × $20 = $300,000 per contract (not your margin, but the notional value)
Tick Size and Tick Value
- Minimum Tick Movement: 0.25 index points
- Tick Value: $5 per tick (0.25 × $20)
This means every 1-point move in the index = $20 profit/loss per contract.
Margin Requirements
You do not need the full contract value to trade. Instead, you need margin set by your broker.
- Initial Margin: Around $16,000 (varies by broker and volatility)
- Maintenance Margin: Slightly lower, often about 75–80% of initial
Many brokers also offer Micro NQ (MNQ) contracts, which are 1/10th the size.
Micro NQ Example
- Symbol: MNQ
- Multiplier: $2
- If index = 15,000, MNQ value = 15,000 × $2 = $30,000
This makes MNQ contracts ideal for beginners with smaller accounts.
Real-Life Example
If you enter a long position at 15,000 and exit at 15,010:
- Move = 10 index points
- Profit = 10 × $20 = $200
If it moves against you by 10 points, you lose $200 per contract.
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FAQs
1. What is the notional value of 1 NQ futures contract?
It is calculated as the Nasdaq-100 index level × $20.
2. Do I need $300,000 to trade one contract?
No. You only need the broker’s margin, usually around $16,000–$18,000.
3. Can I trade a smaller version of NQ?
Yes, Micro NQ (MNQ) contracts are available at 1/10th the size.
4. How much is one tick worth in NQ futures?
One tick (0.25 index points) is worth $5.
5. Why is knowing contract size important?
It helps you calculate potential risk and manage position sizing effectively.
