Futures Contract Specs: Tick Value, Margin & Hours
Before you place a single trade in futures, you need to understand futures contract specifications: the set of rules that define exactly what you’re trading, how much each price movement is worth, and when you can trade. Skipping this step is one of the most common beginner mistakes, and it leads to surprises like unexpected losses, margin calls, or accidentally holding positions into expiration.
This guide explains every major spec in plain language, with concrete examples using the most popular contracts: ES, NQ, CL, and GC.
What Are Contract Specifications?
Every futures contract has a standardized “spec sheet” published by the exchange (usually the CME Group for US futures). These specifications define:
- What the contract represents
- The contract size (multiplier)
- The minimum price movement (tick size) and its dollar value
- When the contract can be traded
- When it expires
- How it’s settled (cash or physical delivery)
You can find official specs on the CME Group website at cmegroup.com by searching for any contract by name or ticker.
Tick Size and Tick Value
These are the two most important specifications for a day trader. Understanding them is non-negotiable.
Tick Size
A tick is the minimum price movement a contract can make. It’s expressed in index points, dollars per unit, or fractions depending on the contract.
For example:
- ES (E-mini S&P 500): Tick size = 0.25 index points
- CL (Crude Oil): Tick size = $0.01 per barrel
- GC (Gold): Tick size = $0.10 per troy ounce
The price can only move in increments of this minimum, you’ll never see ES quoted at 5,200.13, only 5,200.00, 5,200.25, 5,200.50, etc.
Tick Value
Tick value is the dollar amount you make or lose every time the price moves one tick. This is calculated as:
Tick Value = Tick Size × Contract Multiplier
This is the number you need to know cold before trading. Let’s work through each major contract:
Contract Specifications: Key Markets
ES: E-mini S&P 500
| Spec | Value |
|---|---|
| Underlying | S&P 500 Index |
| Contract multiplier | $50 per index point |
| Tick size | 0.25 index points |
| Tick value | $12.50 per tick |
| Contract value (at 5,200) | ~$260,000 |
| Trading hours | Sun 6 PM - Fri 5 PM ET (daily break 5-6 PM) |
| Expiration months | March, June, September, December |
| Settlement | Cash settled |
| Exchange | CME |
What this means in practice: If you’re long 1 ES contract and the market moves from 5,200.00 to 5,205.00 (20 ticks), you’ve made 20 × $12.50 = $250. If it moves against you by 20 ticks, you’ve lost $250.
NQ: E-mini Nasdaq-100
| Spec | Value |
|---|---|
| Underlying | Nasdaq-100 Index |
| Contract multiplier | $20 per index point |
| Tick size | 0.25 index points |
| Tick value | $5.00 per tick |
| Contract value (at 20,000) | ~$400,000 |
| Trading hours | Same as ES |
| Expiration months | March, June, September, December |
| Settlement | Cash settled |
| Exchange | CME |
Key note: NQ has a lower tick value than ES ($5 vs. $12.50), but NQ moves many more ticks per day. Don’t equate lower tick value with lower risk. NQ’s daily range in ticks is typically 3-4× that of ES.
MES and MNQ: Micro E-mini Contracts
Micro contracts are identical in structure to their E-mini counterparts, but 1/10th the size:
| Spec | MES | MNQ |
|---|---|---|
| Multiplier | $5/point | $2/point |
| Tick size | 0.25 points | 0.25 points |
| Tick value | $1.25 | $0.50 |
| Margin (intraday) | ~$50-100 | ~$100-200 |
CL: Crude Oil Futures
| Spec | Value |
|---|---|
| Underlying | WTI Crude Oil (Light Sweet) |
| Contract size | 1,000 barrels |
| Tick size | $0.01 per barrel |
| Tick value | $10.00 per tick |
| Contract value (at $75/barrel) | $75,000 |
| Trading hours | Nearly 24 hours (check CME for exact times) |
| Expiration | Monthly |
| Settlement | Physical delivery (most traders close before expiry) |
| Exchange | NYMEX (part of CME Group) |
Important: CL has physical settlement. if you hold a CL contract to expiration, you’re on the hook for delivery of 1,000 barrels of crude oil. Always close CL positions well before expiration. Most traders use the front-month contract and roll monthly.
GC: Gold Futures
| Spec | Value |
|---|---|
| Underlying | Gold |
| Contract size | 100 troy ounces |
| Tick size | $0.10 per troy ounce |
| Tick value | $10.00 per tick |
| Contract value (at $2,500/oz) | $250,000 |
| Trading hours | Nearly 24 hours |
| Expiration | Monthly (main months: Feb, Apr, Jun, Aug, Oct, Dec) |
| Settlement | Physical delivery |
| Exchange | COMEX (part of CME Group) |
Micro Gold (MGC): Like the equity micro contracts, MGC is 1/10th the size of GC, 10 troy ounces with a $1.00 tick value.
Contract Multiplier: What It Is and Why It Matters
The contract multiplier (sometimes called the contract size) converts index points or per-unit prices into dollar values. It’s the bridge between “the market moved X” and “you made/lost $Y.”
ES example:
- S&P 500 moves from 5,200 to 5,210 = 10 index points
- ES multiplier = $50/point
- 10 points × $50 = $500 profit on 1 long ES contract
CL example:
- Crude oil moves from $75.00 to $76.00 = $1.00 per barrel
- CL contract size = 1,000 barrels
- $1.00 × 1,000 = $1,000 profit on 1 long CL contract
Trading Hours: Regular vs. Extended Sessions
Most futures contracts trade almost 24 hours a day, but not all hours are created equal.
Trading Session Types
Regular Trading Hours (RTH) / Cash Session:
- US equity futures: 9:30 AM - 4:00 PM ET
- This is when the underlying stock exchanges are open
- Highest volume, tightest spreads, most reliable price action
Extended Trading Hours (ETH) / Overnight Session:
- US equity futures: 6:00 PM - 9:30 AM ET (the next day)
- Lower volume
- More susceptible to sudden gaps from overseas news
- Spreads may widen slightly
Globex Session:
- CME’s electronic trading platform runs through most overnight and weekend hours
- Equity futures are closed only during the 5:00-6:00 PM ET maintenance window each weekday
Why Trading Hours Matter for Your Strategy
-
Volatility concentration: The biggest moves typically happen in the first 90 minutes after the US cash open (9:30-11:00 AM ET) and in the final hour (3:00-4:00 PM ET). Many strategies only work well during these windows.
-
Overnight positions: If you hold a position overnight, you’re exposed to international news, economic data releases, and pre-market reactions. ES can gap significantly at the 9:30 AM open.
-
Prop firm rules: Many prop firms require all positions to be closed before 4:00 PM ET or have specific rules about overnight holds. Always check your firm’s terms.
Settlement Types: Cash vs. Physical
Cash settlement means that at expiration, the final P&L is calculated based on the settlement price and cash is transferred. No actual asset changes hands. ES, NQ, and most financial futures are cash settled.
Physical settlement means the underlying commodity is actually delivered. CL (crude oil) and GC (gold) are physically settled. In practice, retail traders and prop firm traders never hold these contracts to delivery, they close or roll their positions before the delivery period begins.
Expiration and Rolling
Futures contracts expire on a predictable schedule:
- Equity index futures (ES, NQ, etc.): Quarterly, third Friday of March, June, September, December
- Crude oil (CL): Monthly, varies, check CME calendar
- Gold (GC): Monthly, varies by active contract month
As expiration approaches, volume shifts to the next contract month. You’ll notice declining volume and open interest in the current front-month contract starting about 2 weeks before expiration. When you see this, roll to the next month to stay in the liquid contract.
Most charting platforms offer continuous contracts (e.g., @ES in NinjaTrader) that automatically splice contract data across expiration dates for backtesting and charting purposes. For actual trading, you need the specific active contract symbol.
Summary: Contract Specs Quick Reference
| Contract | Tick Value | Daily Range (Typical) | Settlement | Key Risk Note |
|---|---|---|---|---|
| ES | $12.50 | 30-60 pts ($375-750/contract) | Cash | Standard equity vol |
| MES | $1.25 | Same pts, 10× less $ | Cash | Beginner-friendly |
| NQ | $5.00 | 150-300 pts ($750-1,500/contract) | Cash | High volatility |
| MNQ | $0.50 | Same pts, 10× less $ | Cash | Beginner-friendly |
| CL | $10.00 | $1-3/barrel ($1,000-3,000/contract) | Physical | Don’t hold to expiry |
| GC | $10.00 | $10-30/oz ($1,000-3,000/contract) | Physical | Don’t hold to expiry |
Understanding these specs is the foundation of every trading decision, position sizing, stop placement, risk management, and margin management all start here. Before trading any new contract, look up its full spec sheet on the CME website and calculate what a 20-tick, 50-tick, and 100-tick move means in dollar terms for your position size.
For more foundational knowledge, see our futures trading beginner’s guide or dive into how futures margins work for the next layer of detail.
Key Takeaways
- Tick value (tick size x contract multiplier) is the single most important spec for day traders; it determines how much you make or lose per minimum price movement
- ES has a $12.50 tick value; NQ has $5.00; CL and GC both have $10.00; micro contracts are 1/10th of their E-mini counterparts
- CL (Crude Oil) and GC (Gold) are physically settled contracts; you must close positions before the delivery period or face actual commodity delivery
- Equity index futures (ES, NQ) expire quarterly (March, June, September, December) and are cash settled; roll to the next contract when volume shifts
- Before trading any new contract, look up its full spec sheet on the CME website and calculate what a 20-tick, 50-tick, and 100-tick move means for your intended position size
Frequently Asked Questions
What does tick value mean in futures trading?
Tick value is the dollar amount you gain or lose every time the price moves one tick (the minimum price increment). For ES, each tick is $12.50. If you are long 1 ES contract and price moves up 4 ticks, you gain $50. If it moves down 4 ticks, you lose $50. This number determines your risk per trade and must be known before placing any order.
What is the difference between cash settlement and physical delivery?
Cash-settled contracts (ES, NQ) settle the final P&L as a cash transfer at expiration; no asset changes hands. Physically-settled contracts (CL, GC) require actual delivery of the underlying commodity. Retail traders must close physically-settled positions well before the delivery period to avoid being obligated to accept 1,000 barrels of crude oil or 100 ounces of gold.
What are continuous contracts and why should I use them?
Continuous contracts (e.g., @ES in NinjaTrader) automatically splice price data across quarterly expirations, providing an unbroken price chart for analysis and backtesting. For actual order entry, you use the specific active contract (e.g., ESH26 for March 2026). Continuous contracts prevent chart gaps at rollover dates.
When do futures contracts expire and how do I roll?
Equity index futures expire quarterly on the third Friday of March, June, September, and December. Volume shifts to the next contract about 2 weeks before expiration. When open interest in the current front-month drops significantly, switch your charts and orders to the next contract month. Most platforms handle this automatically with continuous contract symbols.
Risk Disclaimer: Trading involves substantial risk of loss. Past performance is not indicative of future results. See our full risk disclaimer.