Futures and contract mechanics
Read the contract before you size the trade.
A futures symbol represents a dated exchange contract with a defined multiplier, tick grid, settlement method and lifecycle. The cash required as margin is different from the contract’s notional exposure. These resources explain the fields that must be checked before an order is sized, rolled or copied.
What this topic covers
Contract specifications, exchange calendars and broker margin policies can change. Each resource identifies its checked sources and limitations. Confirm the current contract and account rules before acting.
Every resource identifies its sources, assumptions and correction route. Read the editorial standards for the review method.
Questions answered here
- How do contract multiplier, tick size and tick value connect?
- What changes between micro and standard futures contracts?
- How do margin, expiry, notice and settlement affect a position?
- Which values must be refreshed from the exchange or broker?
Complete topic index
17 reviewed resources
Guides (10)
- Contango vs Backwardation: Read a Futures Curve and a Roll
Learn to distinguish a futures curve from a price forecast, calculate a calendar spread and trace an original roll example without inventing a guaranteed return.
- Continuous Futures Contracts: Charts, Roll Gaps and Real Orders
Understand continuous futures charts, contract switching and back-adjustment. Use a worked roll-gap example and verify the actual expiry behind every order.
- ES vs MES Futures: Contract Size, Costs and Position Control
Compare ES and MES through point values, equivalent exposure, an original sizing example, partial exits, costs and practical account checks.
- Futures Cash vs Physical Settlement: Dates, Obligations and Checks
Distinguish daily and final settlement, compare cash and physical obligations, and build an expiration checklist using primary exchange and broker sources.
- Futures Contracts Explained: Size, Margin, P&L and Expiry
Understand a futures contract with a worked trade, a settlement ledger and a practical checklist for size, margin, order execution and expiration.
- Futures Margin: Intraday, Initial and Overnight Requirements
Separate broker intraday margin from initial and maintenance margin with a hypothetical cutoff example, funding checks and account-level limitations.
- Futures vs Options: Rights, Obligations, Margin and Expiry
Compare futures, options on futures and equity/index options by rights, obligations, premium, margin, settlement, exercise, assignment and expiry.
- NQ vs MNQ Futures: Point Value, Sizing and Execution Examples
Understand NQ and MNQ with price-to-dollar calculations, whole-contract sizing, cost comparisons and a checklist for matching Nasdaq futures exposure.
- VIX Futures: Contract Size, Tick Value, Expiry and Settlement
Understand VX futures contract size, tick value, term structure, trading hours, expiry and SOQ cash settlement, with copying and sizing checks.
- WTI Crude Oil Futures: CL, MCL, Tick Value and Delivery
Compare CL and Micro WTI MCL contract size, tick value, settlement and expiry. Calculate P&L and understand physical-delivery and copying risks.
References (6)
- Daily Futures Settlement and Mark-to-Market: Reconcile the Cash Flow
Work through daily futures P&L, reconcile it to the full trade result, and distinguish daily settlement from closing a position or final contract settlement.
- First Notice Day vs Last Trading Day: Build a Futures Deadline Checklist
Distinguish notice, trading, settlement and broker deadlines with an example schedule, then check the earliest applicable action date for a futures position.
- Futures Basis: State the Sign Before Comparing Cash and Futures
Calculate futures-minus-cash basis, compare a change in basis with each price move, and identify why sign, timing and instrument differences matter.
- Futures Calendar Spreads: Define the Legs and Check the Net Result
Calculate a two-maturity futures spread with a worked P&L example, distinguish native spread execution from separate legs, and account for expiry and margin.
- Futures Month Codes: Decode the Contract Without Guessing Its Expiry
Use the full futures month-code table, decode a product-month-year example, and check why a named month does not always reveal the last trading date.
- Open Interest: Count Outstanding Contracts Without Double-Counting Sides
Distinguish open interest from trading volume with an opening, closing and transfer example, then check report timing and avoid unsupported direction signals.
Calculators and tools (1)
- Futures Position Size and Tick Value Calculator
Derive futures tick value from tick size and multiplier, then calculate whole contracts from a hypothetical budget, stop distance and modeled fees.
Product context
Connect the education to a verified workflow
A correct formula or market definition does not prove that every broker, platform pair, account mode or order action is supported. Check the current product information for the exact setup.
Review supported Futures workflowsConfirm the platform, account, instrument and copying direction required for the proposed setup.
