Futures multiplier
Definition · Level 7 · Futures & commodities
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Dollars of profit or loss per one point of price move, per contract: $50 for ES, $5 for MES, $20 for NQ. For crude oil it is 1,000 barrels, so $1,000 per $1 of price.
Example
ES rises 10 points: 10 × $50 = $500 per contract.
Where Tradecraft teaches it
Level 7 · Futures & commodities, in the lesson “Futures: the contract”: A price fixed today for a trade later: long, short, the multiplier and notional value, counted in dollars.
Related terms
- ESThe E-mini S&P 500 future, traded on the Chicago Mercantile Exchange (CME): $50 per index point, smallest step 0.25 points ($12.50), quarterly…
- Futures contractAn exchange-traded, standardized agreement to buy or sell a set quantity of an asset at a price fixed today, for settlement on a set future date.
- MESThe Micro E-mini S&P 500 future: one tenth of an ES, $5 per index point, smallest step 0.25 points ($1.25).
- Notional valueThe full size of the exposure a derivative controls: price × multiplier × number of contracts.
- BackwardationCurve shape where later-dated futures trade below nearer ones.
- BasisThe gap between the spot (cash) price and a futures price, usually spot − futures.