Futures position sizing

Trading Discussion
1

Hi traders. I have a question. Is futures position sizing the same as spot position sizing? Can I use the same calculator for both?

2

Hi, futures are a little different, check the cme group website for more details. Regards Greg

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3

Is this for trading futures or hedging with them?

4

Depends on your strategy, you can do it both.

5

Is this what you are referring to?

6

I am referring to this website in general. Futures has different margins depends on instruments, and expires during the time, if you don’t want to deliver or get back 1000 oil barrels you have to keep an eye on the deadlines

7

I am interested in the binance perpetual futures. Expiring is not an issue with them.

8

it’s the same in some ways and different in others

the underlying principles are exactly the same but the details are very different

specifically, the pip-values are all different

example: AUS/USD spot has a pip-value of $10 per pip per lot; 6A (the futures equivalent) has a tick-value of $5 per tick per lot

another example: GBP/USD spot has a pip-value of $10 per pip per lot; 6B (the futures equivalent) has a tick-value of $6.25 per tick per lot

another example: “US500” (or whatever your broker might call their S&P product) has a pip-value of $1 or $10 per pip per lot, depending on the broker; ES (the futures equivalent) has a tick-value of $12.50 per tick per lot (that’s $50 per “point”) but the very liquid, very tradable MES (micro S&P) is only $1.25 per tick per lot (that’s $5 per “point”)

is this the kind of thing you’re asking about?

it takes just a little bit (really a “little” bit, that’s not a euphemism!) of getting used to

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