Trading Micro and Mini Contracts: Guidelines and Limitations
YRM Prop’s account structure supports trading in both micro and mini futures contracts, with specific guidelines designed to provide flexibility while maintaining proper risk management. Here’s what you need to know about contract limitations and position sizing:
Contract Size Equivalencies
When calculating your position limits, we use the following equivalencies:
| Contract Type | Equivalent to Micros |
|---|---|
| 1 Micro (MES, MNQ, etc.) | 1 micro unit |
| 1 Mini (ES, NQ, etc.) | 10 micro units |
| 1 Full-size contract | 50 micro units |
Position Limits by Account Tier
Each account tier has a maximum position limit expressed in micro contract equivalents:
| Account Size | Max Position (Micros) | Examples of Allowed Combinations |
|---|---|---|
| $50K Account | 50 micros total | • 50 MES contracts<br>• 5 ES mini contracts<br>• 2 ES mini + 30 MES<br>• 1 full-size + 0 others |
| $100K Account | 100 micros total | • 100 MES contracts<br>• 10 ES mini contracts<br>• 5 ES mini + 50 MES<br>• 2 full-size + 0 others |
| $150K Account | 150 micros total | • 150 MES contracts<br>• 15 ES mini contracts<br>• 10 ES mini + 50 MES<br>• 3 full-size + 0 others |
Trading Multiple Instruments
When trading across different futures instruments:
- The combined total of all positions must not exceed your account’s micro equivalent limit
- Each instrument’s micro equivalent value counts toward your total allocation
- You can diversify across multiple instruments as long as the total remains under your limit
Contract Type Recommendations
- New Traders: We recommend focusing on micro contracts (MES, MNQ, M2K, etc.) to allow for greater position diversification and more precise risk management
- Experienced Traders: Mini contracts (ES, NQ, etc.) can be more capital efficient due to lower commission costs per contract value
- Full-Size Contracts: Generally only recommended for the most experienced traders due to their significant capital requirements and impact on position limits
Margin Requirements
While YRM Prop covers the margin requirements for your trading, it’s good practice to be aware of typical margin requirements for each contract type:
- Micro contracts: Typically require $50-$200 in margin per contract
- Mini contracts: Typically require $500-$2,000 in margin per contract
- Full-size contracts: Typically require $2,500-$10,000 in margin per contract
Understanding these position limits and guidelines will help you optimize your trading strategy while staying within YRM Prop’s risk management framework.