Futures Contract Specs Explained: Size, Tick, and More

Definition
Futures contract specifications (or “specs”) are the blueprint of every futures contract. They tell you exactly what you’re trading, how it behaves, and what to expect throughout the life of the contract.

Before you hit “buy” on a futures trade, there’s something you need to check: the contract specs. These aren’t just technical details, they tell you exactly what you’re getting into. From how big the contract is to how much each price move is worth, these rules shape your trading experience from start to finish.

What are futures contract specs?

Every time you enter a futures trade, you’re stepping into a standardized agreement created by an exchange. You’re not signing paperwork, but you are agreeing to very specific rules.

The specs define things like how large the contract is, what the tick size is, when you can trade it, how it’s priced, and how it’s settled, either in cash or delivery.

Why does this matter? Because if you don’t understand the specs, you may risk more than you realize or get caught off guard at expiration. Specs are the foundation of every trade.

Contract size (aka the multiplier)

One of the most important specs is contract size, also called the multiplier. This tells you how much of the underlying asset each contract controls. It directly impacts your total exposure and how much money you can gain or lose with each price movement.

Unlike stocks, where you choose how many shares to buy, futures contracts come in fixed sizes. For example:

• /CL (Crude oil) = 1,000 barrels per contract

• /GC (Gold) = 100 troy ounces

• /ES (E-mini S&P 500) = 50 times the S&P 500 index value

That means if crude oil rises $1 per barrel, a /CL contract gains (or loses) $1,000.

Some contracts also have mini or micro versions that allow for smaller trade sizes:

• /MCL (Micro Crude Oil) = 100 barrels

• /MES (Micro E-mini S&P 500) = 5× the index

These smaller contracts are ideal for beginners, part-time traders, or anyone who wants to control risk without giving up the ability to trade actively.

Price quotation

Price quotation refers to how a futures contract’s price is displayed. This might seem like a small detail, but it affects how you read market data and how quickly your P&L changes.

The format depends on what’s being traded. Some contracts use dollars and cents, others use decimals or even fractions.

Examples:

• Crude oil is quoted in dollars and cents per barrel (e.g., 72.83)

• Gold is quoted in dollars and tenths of a dollar per ounce (e.g., 2348.7)

• Euro FX is quoted in euros per dollar (e.g., 1.07485)

A key thing to watch for is decimal precision. With currencies and interest rate products, tiny changes can still represent real money movement, especially when leveraged through a large contract multiplier.

So before you trade, double-check how the price is quoted and how that quote translates to your actual risk.

Tick size

The tick size is the minimum price movement a futures contract can make. This tells you how finely a product can change, and ultimately how fast your profit or loss can accumulate.

Tick size varies across contracts:

• /ES (E-mini S&P 500): Tick size = 0.25 index points

• /CL (Crude oil): Tick size = $0.01 per barrel

• /GC (Gold): Tick size = $0.10 per ounce

• /BTC (Bitcoin): Tick size = $5

• /6E (Euro FX): Tick size = 0.00005

If crude oil is trading at $72.83 and the tick size is $0.01, the next possible price is $72.84 or $72.82 — nothing in between.

Understanding tick size is essential for setting stop-losses, take-profit orders, and knowing how many price moves it takes to hit your desired outcome.

Tick value

Tick value takes the idea of tick size one step further. It tells you exactly how much you’ll gain or lose with each tick movement, per contract.

This is one of the most important numbers for any futures trader to know, because it connects price movement to real-world dollars in your account.

Here’s the formula:

Tick value = Contract size × Tick size

Let’s apply it:

• /CL (Crude oil): 1,000 barrels × $0.01 = $10 per tick

• /GC (Gold): 100 ounces × $0.10 = $10 per tick

• /MES (Micro E-mini S&P 500): 5 × 0.25 = $1.25 per tick

So if you’re trading one crude oil contract and the price moves up 5 ticks, that’s a $50 gain. If it drops 10 ticks, that’s a $100 loss.

Multiply that by your position size if you’re holding multiple contracts. Three /CL contracts? You’re looking at $30 per tick.

Trading hours

Futures trade much longer hours than stocks. In fact, many contracts are open nearly 24 hours a day, five days a week. This gives traders flexibility to react to global news and market moves that happen outside the traditional stock market session.

Typical trading schedule:

• Opens: Sunday 5:00 PM CT

• Closes: Friday 4:00 PM CT

• Daily break: 4:00–5:00 PM CT

That means you can trade futures in the early morning, late at night, or during international market sessions. However, not all hours are equal. Liquidity can drop during off-peak times, which can lead to wider spreads and faster price swings.

Be aware of when your chosen contract is most active and how trading volume fluctuates throughout the day.

Settlement method

Every futures contract either settles in cash or settles physically. Understanding the difference is essential, especially if you’re holding positions into expiration.

• Physical settlement means the actual asset is delivered at the end of the contract.

• Cash settlement means no physical delivery. Your account is debited or credited based on the final price.

Examples:

• Physically settled:

• /CL (Crude oil)

• /GC (Gold)

• Cash-settled:

• /ES (E-mini S&P 500)

• /NQ (E-mini Nasdaq)

• /BTC (Bitcoin)

Most retail brokers, like MetroTrade, won’t let you take physical delivery. That means you’ll need to close or roll your position before the delivery window, otherwise your broker may close it for you automatically.

Last day to trade

Every futures contract has a last day to trade, which is the final day you can close your position. This date is especially important for physically settled contracts.

• For cash-settled contracts, the last day is usually the expiration date.

• For physically settled contracts, the last trading day is often a few days before – something called the First Notice Day (FND).

Why does this matter?

If you’re still holding a physically settled contract past the FND, the exchange assumes you’re ready to receive (or deliver) the underlying asset. That’s a problem if you’re not a commercial user or aren’t set up for delivery logistics.

Always know the last day to trade and plan to exit or roll over your contracts before that deadline.

Other important specs

Contract specs can also include:

• Price limits: Daily max price moves allowed before halts

• Circuit breakers: Temporary trading pauses when extreme volatility hits

• Grade and delivery location: For contracts based on physical goods

• Position limits: Maximum contracts you can hold, especially in expiring months

These additional rules help keep markets orderly and fair, especially during fast-moving conditions.

You can always find the full specs for any contract on the exchange’s website. The CME Group publishes detailed info on every product they list.

Key takeaway

Contract specs are the fine print that every futures trader needs to know. They control how each product trades, how it’s quoted, how much risk you’re taking, and what happens when the contract ends.

Before you place a trade, make sure you understand:

• What the contract controls 
• How much a tick is worth 
• When the contract trades 
• How it settles 
• When to exit

Specs may seem technical at first, but learning them gives you confidence, control, and a serious edge over traders who just guess.

Now that you know how contract specs shape your trades, the next step is understanding margin, or the capital you need to open and hold a position. In the next article, we’ll break down initial margin, maintenance margin, and how leverage works in the futures market.

Next lesson: What is Margin in Futures and How Does It Work? →

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