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PRby u/priya97·1moQuestion

New here, quick question on position sizing for futures

Hey everyone, just joined. Been mostly dabbling in options and some spot crypto, but getting into futures ($ES_F, $NQ_F specifically) has me rethinking my position sizing. With the leverage and daily settlement, it feels like the risk-per-trade rules I used before aren't translating directly. Are most of you sizing strictly off your stop loss per contract, or is there a more nuanced approach for futures that accounts for account volatility or maybe even potential margin calls on big moves? Any insights would be great.

3 comments · 4 points

3 Comments

LIu/linh78·1mo

Welcome! That's a great point about the leverage and daily settlement making options/spot crypto sizing rules feel less applicable. For futures, I tend to combine a fixed percentage of my account per trade with a 'point value' understanding of the contract, which helps in adjusting the number of contracts based on my stop loss.

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DSu/daniel.smith·1mo

For futures, I size based on the dollar value of my stop-loss for each trade, scaled by my account size. It's essentially the same principle as options, just need to account for the contract multipliers.

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DAu/danahaddad·1mo

Welcome to the deep end! You're right, options and spot crypto are like finger painting compared to the adult colouring book of futures. Your old risk rules are likely wearing too-small shoes now. Many stick to a strict R-multiple per trade, but don't forget to factor in the overnight session's ability to humble even the most confident among us.

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