Micro Futures: Sizing Becomes Possible
Micro futures are contracts one tenth the size of the corresponding mini, on the same underlying and the same exchange. The smaller size does not reduce risk by itself; it makes position sizing possible for a small account, because the stop can now be set from the chart rather than from the contract.
How it works
A micro futures contract is one tenth the size of the corresponding mini contract. It trades the same underlying on the same exchange, so the futures mechanics apply unchanged.
It makes correct position sizing possible at all. Before micros, a small account often could not take a position whose risk matched its plan — the smallest contract was already too big.
Finer granularity is the whole product. A tenth-sized unit gives ten steps where mini futures give one, so lot size becomes a choice rather than an obstacle.
And it is the honest place to learn with real money. A simulator teaches mechanics; a size too small to hurt but real enough to feel teaches execution.
The order this permits is the actual gain. Decide the stop from the chart, compute the money at risk, then buy the count that fits. The futures contract is unchanged; the sizing arithmetic is not.
Creep, commission and a thinner book
But ten micros is one mini, which people forget. The smaller contract does not reduce risk on its own; it only makes risk adjustable, and an adjustable thing can be adjusted upward.
The instrument removes a constraint, and removed constraints get used. Leverage per unit of exposure is identical; only the step shrank, so risk per trade does the work the contract once did.
The commission per contract is the limiting factor. Ten micros pay roughly ten commissions where one mini pays one, so past a certain count the larger contract is cheaper.
And the book is thinner than the larger size. Participation is genuine, but the bid-ask spread and the depth behind it are not the mini’s, so large orders fill differently.
Many small contracts means many small fees. The per-contract charge does not shrink with the contract, so the smaller size buys precision and pays for it in fee share.
In practice
Participation is real but lighter than the mini. Volume is exchange-reported and genuine, so volume tools work — but the same order lands differently in a shallower book.
The holding period should not change with the size. A smaller contract is not a reason to trade more often. The market is unchanged; only your step between sizes moved.
A gap still hurts, just proportionally. An opening gap moves through your level in the micro exactly as in the mini. The loss is a tenth the size, not a tenth as likely.
And now the stop can come from the chart, not the budget. Put the stop loss where the idea is wrong, then size to it. A margin account decides what you can hold, never what you should.
Every round trip costs 2% of a bar. On this site’s shared 576-bar history that is 0.0098 price units, and 45% of the smallest bar.
Working out your crossover point
Do the arithmetic once and write the answer down. Take the per-contract commission your broker charges, multiply it by ten, and set it against the commission on a single mini. Same exposure, different packaging, so the gap is pure cost.
Below the crossover the granularity is nearly free; above it you are paying for precision you no longer need. While your plan sizes you at a handful of micros the extra fee is small, and matching risk to the chart is worth it. Once the count approaches ten you pay ten commissions to hold what one would hold.
Then check the answer against your own account rather than a general rule. Commission schedules differ and the crossover moves with them, so compute it against your trading capital and the stop distance you use. Take the granularity while it is still cheaper than the precision it buys.
What micro futures are not
- Not a smaller amount of risk. The exposure per contract is smaller; the risk is whatever you size to.
- Not paper trading. Real money moves, and the discomfort is the part that teaches.
- Not a different market. Same underlying, same exchange, same hours as the mini.
- Not free of leverage. The multiplier is structural, and a smaller contract does not remove it.
When it fails
In a range the fees outweigh the small moves. Inside a trading range the moves are small and the round trip is not, so a trend method hands its result back in commission.
- When the round trip is large relative to the bar. It is 45% of the smallest bar here, and exceeds 10% of a bar’s range on 15 of the 576 bars.
- When the size drifts upward. Adding one more contract is easy because each is small, and ten of them is the contract you were avoiding.
- When the bar you sized against is not the bar you get. Ranges run from a tenth percentile of 0.17 to a ninetieth of 1.101, a ratio of 6.5.
- When the volatility measure lags. The 14-bar average true range spans 0.2823 to 0.7954 across those percentiles, a ratio of 2.82 — smoother than the bars, and later.
- When the book is thin. The depth behind the micro is not the mini’s, so a large order fills differently from the way it was tested.
The original data
Three videos carry “micro futures” in the title, at a median of 26,582 views. The scan of 24,971
videos in research/search-study-corpus.jsonl, logged in research/broker-coverage.json, puts them
across 2 channels with a maximum of 53,438 — a high median from almost no supply. “Mini
futures” returns 7 videos at 22,742 across 4 channels and “emini” 21 at 7,073, while 437 videos across
258 channels teach prop firms at 9,488. “Tick size” appears in 0 titles and “contract size” in 1, at
30,578 views.
Then the cost figure, which says what the smaller size buys.
research/series-measurements.json, via site/measure_series.py, puts the round trip on this shared
576-bar history at 0.0098 price units — 2% of a median bar’s range of 0.493, and 45% of the smallest
bar at 0.022. Commission does not shrink with the contract, so precision is paid for in fee share.
“Position sizing” appears in 162 titles at a median of 1,730 views, “lot size” in 14 at 74,124. Set
the contract count from the stop and the risk figure, and recompute it every trade rather than
settling into a habitual size.
Related
Mini futures is the size a micro is one tenth of — and where the commission arithmetic turns back in its favour.
Risk per trade is the figure the contract count comes from, and without it the granularity has nothing to work on.
The futures contract page covers expiry, rolling and margin, which are identical whichever size you trade.
I learned more from trading a size that could not hurt me than from any stretch of clicking around a demonstration account. The mechanics were identical. What changed was that I could feel the position - something small and real still makes your hand hesitate before you press the button, and a simulator never once did that to me. That hesitation is the thing worth practising, and you cannot practise it for free.
— Michael Whitman
This page is educational, not financial advice. Test every idea on your own charts before risking money.