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Risk Management Mastery·Intermediate· 5 min

Position sizing on NQ & MNQ

How to translate 'risk 0.5%' into an actual number of contracts.

The formula

Contracts = (Account × Risk%) ÷ (Stop in points × $ per point). $20/pt for NQ, $2/pt for MNQ.

Worked example

Account $50,000. Risk 0.5% = $250. Stop is 15 points. NQ dollar risk per contract = 15 × $20 = $300 → 0 contracts (too much). MNQ dollar risk per contract = 15 × $2 = $30 → 8 contracts fit.

Why MNQ is the right start

MNQ gives you 10× the sizing granularity of NQ. You can dial risk precisely instead of being forced into 'too small' or 'too big.'

Watch it on the chart
Chart breakdown
RISK = CONTRACTS × STOP × TICK VALUEAccount $10,000 · Risk 1% = $100 max loss2 MNQ× 25 tick stop× $0.50 tick = $25Wider stop → fewer contracts. Same $ risk.Tighter stop → more contracts. Same $ risk.
Chart with stop distance highlighted and contract math worked out in a sidebar.
Key takeaways
  • Size = risk budget ÷ stop distance in dollars.
  • MNQ lets you fine-tune risk. NQ doesn't.
  • If the formula returns 0, take the trade smaller or skip it.
  • Never round UP contracts. Always round down.
Quick check

Account $25,000, risk 1% = $250. Stop is 12 points on MNQ. How many contracts?

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Educational simulation only. Not financial advice. Prop firm rules vary between companies — always read the official rules of the specific firm before trading.