Futures trading has become more accessible than ever. With different contract sizes available, traders can now choose between micro and E-mini futures based on their goals, experience, and account size. Understanding these contract types is key to managing risk and trading effectively.
In this guide, we’ll break down the differences between micro and E-mini futures contracts. You’ll learn how each contract works, how much capital is needed to trade them, and which type might be best for your trading strategy.
Key Takeaways
- Micro and E-mini futures differ mainly in contract size, margin requirements, and risk exposure.
- Micro futures are ideal for beginners or traders with smaller accounts due to their lower capital and risk requirements.
- E-mini futures strike a balance between risk and liquidity, making them a popular choice for active retail traders.
What Are Micro and E-Mini Futures Contracts?
All futures contracts represent an agreement to buy or sell an asset at a future date. The main difference between micro and E-mini contracts is the size of the position they control.
- E-Mini Futures were introduced in the late 1990s to offer smaller, more affordable alternatives to standard-size contracts. They quickly became popular among retail traders.
- Micro Futures are even smaller versions, launched in 2019 by the CME Group. They allow traders to participate in futures markets with a fraction of the capital needed for E-minis.
These scaled-down contracts let more traders manage risk and test strategies without the pressure of large capital exposure.
Key Differences at a Glance
Using the S&P 500 futures family as a reference:
| Contract Type | Typical Size | Tick Value | Initial Margin | Popular Example |
| Micro | 1/10 of E-mini | $1.25 | ~$500–$1,000 | Micro E-mini S&P 500 (MES) |
| E-mini | Larger contract | $12.50 | ~$5,000–$13,000 | E-mini S&P 500 (ES) |
Values vary by contract and market conditions. Always check current exchange listings.
Contract Size and Notional Value
Contract size refers to the amount of the underlying asset represented by one futures contract. Notional value is calculated by multiplying the contract size by the current price of the underlying asset.
Let’s look at the S&P 500 futures as an example:
- Micro E-mini (MES): $5 x S&P 500 Index
- E-mini (ES): $50 x S&P 500 Index
If the S&P 500 is trading at 5,000:
- Micro = 5,000 x $5 = $25,000 notional
- E-mini = 5,000 x $50 = $250,000 notional
This difference affects how much capital you need and how much risk you take with each trade.
Tick Sizes and Dollar Value per Tick
A tick is the smallest possible price movement for a futures contract. Each tick has a dollar value that determines how much you gain or lose when the price moves.
For S&P 500 contracts:
- Micro E-mini (MES): Tick size = 0.25 points, Tick value = $1.25
- E-mini (ES): Tick size = 0.25 points, Tick value = $12.50
Even though both contracts move in the same increments, the financial impact is scaled. This is why many beginners start with micros—they let you trade the same market with less risk per tick.
Margin Requirements and Leverage
Margin is the amount of capital required to open a position. Futures trading is leveraged, so you only need to post a portion of the contract’s notional value as margin.
Here’s a simplified look:
- Micro E-mini: ~$500–$1,000 per contract
- E-mini: ~$5,000–$13,000 per contract
These are initial margin amounts. Exchanges and brokers also enforce maintenance margin, which is the minimum you must hold to keep a position open.
Leverage allows traders to control large positions with less capital, but it also increases risk. A small move in price can result in a large percentage gain (or loss) relative to your margin.
Trading Volume and Liquidity
Liquidity refers to how easily you can enter and exit trades without affecting the price. High liquidity generally leads to tighter bid/ask spreads and better execution.
- E-minis have the highest liquidity and volume. They are the go-to choice for active day traders and institutions.
- Micros have lower volume but still enough for most retail traders. They mirror the E-mini order book, making them a reliable choice.
For most traders, E-minis or micros offer a good balance of liquidity and accessibility.
Use Cases: Who Should Trade What?
Micro Futures
- Ideal for beginners and small accounts
- Useful for testing strategies without risking large capital
- Good for learning how futures markets work
E-Mini Futures
- Popular among swing traders and active day traders
- Suitable for intermediate traders with more experience
- Great for those who want liquidity and manageable risk
Costs and Commissions
Trading costs include exchange fees, clearing fees, and brokerage commissions. While some brokers offer low commissions on micros and E-minis, others may charge a flat fee per contract.
A few key points:
- Micros often have the lowest fees, making them budget-friendly
- E-minis may have slightly higher commissions, but are still cost-effective due to higher liquidity
Compare total round-trip costs (entry and exit) when choosing a contract type. For frequent traders, small differences in fees can add up.
Pros and Cons of Each Contract Type
Micro Futures
Pros:
- Low margin requirements and notional value
- Accessible for beginners and small accounts
- Easier to manage risk and position size
Cons:
- Lower trading volume may mean wider bid/ask spreads
- Smaller tick value means slower profit accumulation
E-Mini Futures
Pros:
- High liquidity and tight spreads
- Balanced risk and reward for experienced retail traders
- Popular with active traders across asset classes
Cons:
- Require more margin than micros
- Larger tick value can lead to bigger swings in P&L
How to Choose the Right Contract for Your Strategy
Start by asking yourself a few questions:
- What’s your account size? Micros are great for accounts under $10,000.
- How much risk are you comfortable with? Smaller contracts reduce exposure.
- How often do you plan to trade? E-minis offer better liquidity for active trading.
- Are you testing or scaling a strategy? Micros let you practice or scale in and out easily.
No matter your experience level, there’s a futures contract that fits your needs.
Why MetroTrade Works for All Futures Traders
At MetroTrade, we support trading in both micro and E-mini futures contracts. Whether you’re just starting out or trading at scale, our platform gives you the flexibility to grow.
- Trade CME micro contracts with low capital
- Step up to E-minis when you’re ready
- Access real-time data and educational tools
- Practice with a free demo account before risking real funds
MetroTrader makes futures trading accessible for everyone.
Open an account today
Conclusion
Choosing between micro and E-mini futures comes down to your goals, capital, and experience level. Micros offer a gentle entry point, while E-minis strike a balance for more active or experienced traders.
If you’re just getting started or want to practice in a live market with low risk, micro futures may be the perfect fit. As you grow your skills and account size, E-minis offer the liquidity and speed many active traders need.
Ready to get started? Open a MetroTrade account and explore futures trading on your terms.
Frequently Asked Questions
What is the difference between micro and E-mini futures contracts?
Micro and E-mini futures differ mainly in contract size, margin requirements, and tick value. Micro futures are 1/10 the size of E-minis and are best for small accounts. E-minis offer moderate exposure and high liquidity for active traders.
How much capital do I need to trade micro futures?
Most brokers require an initial margin of around $100 to $500 per contract. This low barrier makes micros a popular choice for beginner traders or those with smaller account balances.
Are E-mini futures better than micro futures for day trading?
E-mini futures are generally better for day trading due to higher liquidity and larger tick values, which can lead to more meaningful profit opportunities. However, micro futures are often used by newer traders to practice strategies with lower risk.
Why are micro futures good for beginners?
Micro futures are good for beginners because they require less capital, have smaller position sizes, and help limit potential losses. They let new traders gain experience in the futures market without taking on large financial risk.
Can I trade both micro and E-mini futures on the same platform?
Yes, most futures trading platforms, including MetroTrader, allow users to trade both micro and E-mini contracts from a single account. This flexibility helps traders scale their positions as their experience and account size grow.
What is the tick value for micro vs E-mini S&P 500 futures?
The tick value for Micro E-mini S&P 500 (MES) futures is $1.25, while the tick value for E-mini S&P 500 (ES) futures is $12.50. Both move in 0.25-point increments, but the dollar value of each tick is scaled to match the contract size.
The content provided is for informational and educational purposes only and should not be considered trading, investment, tax, or legal advice. Futures trading involves substantial risk and is not suitable for every investor. Past performance is not indicative of future results. You should carefully consider whether trading is appropriate for your financial situation. Always consult with a licensed financial professional before making any trading decisions. MetroTrade is not liable for any losses or damages arising from the use of this content.