How much can I lose? Position size (with a calculator)
Click an underlined word to see what it means.
This is the most important lesson in the whole academy. Most beginners don't lose because they can't read a chart, but because they open a position that is too big.
The 1% rule
Never risk more than 1% of the account on one trade. On $10,000 that is $100. Even after 10 losing trades in a row (it happens!), you still have 90% of the account.
How to work out how many contracts you may open
You need three numbers:
- How much you may lose (1% of the account).
- How far away your stop is, in .
- What one point is worth on your instrument.
Formula: contracts = allowed loss ÷ (stop × point value). Don't worry, the calculator below does it for you.
Why micro contracts
On NQ one point is worth $20. A 25-point stop is already $500 per contract. On MNQ the same point is worth $2, so only $50. That's why beginners always start with micro contracts (MNQ, MES).
Futures come with . That means you can lose a lot with little money. Position size is the one thing that is completely under your control.
✅ Quick check
You have $10,000 and 1% risk. What is the most you may lose on one trade?
Education, not financial advice. Trading futures is risky and you can lose more than you put in.