How the MES lot size is calculated
Position size = risk in dollars ÷ (stop distance × value per unit). On MES, one tick is worth $1.25 per contract, so a 6 points stop costs $30.00 per contract. $250 ÷ $30.00 = 8 contracts (rounded down to the 1 step).
Spread and commission add a little to the real cost of each trade, so many traders round down further.
The $25K rules in MES points
Rules are set in dollars, but you watch the MES chart. This is how far price can move against a 8-contract position before each limit is reached:
- Futures: target $1,500 (37.5 points), daily loss $750 (18.75 points), max loss $1,500 trailing (37.5 points), all with 8 contracts.
- At 1% risk per trade it takes 3 losing trades in a single day to hit the Futures daily limit.
Maximum MES position size on $25K
Futures: up to 3 contracts
When MES moves most
Same timing as ES: the New York open and 08:30 data. Size down around those moments: wider swings mean a wider stop, and a wider stop with the same risk means fewer contracts.