How the YM lot size is calculated
Position size = risk in dollars ÷ (stop distance × value per unit). On YM, one tick is worth $5.00 per contract, so a 40 points stop costs $200.00 per contract. $250 ÷ $200.00 = 1 contract (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 YM points
Rules are set in dollars, but you watch the YM chart. This is how far price can move against a 1-contract position before each limit is reached:
- Futures: target $1,500 (300 points), daily loss $750 (150 points), max loss $1,500 trailing (300 points), all with 1 contract.
- At 1% risk per trade it takes 3 losing trades in a single day to hit the Futures daily limit.
Maximum YM position size on $25K
Futures: up to 3 contracts
When YM moves most
Most active at the New York open and on US macro data. Size down around those moments: wider swings mean a wider stop, and a wider stop with the same risk means fewer contracts.