TradeTerminal_/glossary/contract specifications
instruments3 min read8 sections

Contract Specifications

TL;DRThe standardized terms set by the exchange for every futures product. Tick size, tick value, contract size, trading hours, expiration dates, and settlement method. Know these before you trade.

$what are contract specifications?

Contract specifications are the standardized terms set by the exchange for every futures product. They define the underlying asset, how much of it one contract controls, the minimum price movement, the dollar value of each movement, when the contract expires, and how it settles.

These specs are identical for every participant. That standardization is what makes futures tradeable on an exchange. You need to know the specs for any product you trade because they directly affect your risk, profit per tick, and margin requirements.

$key specifications to know

Tick size is the minimum price increment. ES moves in 0.25-point ticks. CL moves in $0.01 ticks.

Tick value is the dollar amount per tick. ES is $12.50, NQ is $5.00, CL is $10.00. This is the number you use for all risk calculations.

Contract size (multiplier) defines how much one contract represents. ES is $50 times the index. CL is 1,000 barrels. GC is 100 troy ounces.

Trading hours vary by product. ES trades nearly 23 hours per day. Agricultural products have shorter sessions.

Expiration and settlement define when the contract ends and how it resolves.

$where to find contract specifications

The CME Group website (cmegroup.com) is the official source for all specs on products traded at CME, CBOT, NYMEX, and COMEX. Each product has a dedicated spec page.

Your broker's platform also displays specs, usually accessible by right-clicking a contract or checking product details. Always verify specs before trading a new product.

$key takeaways

>Contract specs are standardized by the exchange and identical for all traders.
>Tick size, tick value, contract size, hours, and settlement are the specs that matter most.
>Know the tick value before you trade. It determines your dollar risk per movement.
>The CME Group website is the official source for all specs.
>Never trade a new product without checking its specifications first.

$margin requirements (approximate)

productinitialmaintenanceday trade*
E-mini S&P 500 (ES)$50/point$12.50/tick0.25 pt tick
E-mini Nasdaq-100 (NQ)$20/point$5.00/tick0.25 pt tick
Crude Oil (CL)$1,000/point$10.00/tick$0.01 tick
Gold (GC)$100/point$10.00/tick$0.10 tick
30-Year T-Bond (ZB)$1,000/point$31.25/tick1/32 tick
Corn (ZC)$50/point$12.50/tick0.25c tick

*Day trade margins vary by broker and change with volatility.

$real-world examples

ES vs. NQ specs

You're comparing ES and NQ. Both are equity index futures but specs differ.

ES: $50 per point, $12.50 per tick. NQ: $20 per point, $5.00 per tick. A 10-point move is $500 on ES but $200 on NQ. Despite NQ having a higher notional value, the per-point dollar impact is lower.

Crude oil specs

You want to trade CL. One contract is 1,000 barrels. Tick size is $0.01, worth $10 per tick.

A $1.00 move (100 ticks) is $1,000 per contract. CL is a $75,000+ notional contract. Make sure your risk plan can handle the per-tick exposure.

!common mistakes

BAD

Trading a new product without checking the tick value

FIX

CL is $10 per tick. ZB is $31.25 per tick. The difference is massive. Always verify before your first trade.

BAD

Assuming all index futures have the same multiplier

FIX

ES is $50/point, NQ is $20/point, YM is $5/point. A 100-point move means very different dollar amounts.

BAD

Not checking trading hours before placing overnight orders

FIX

Not all products trade 23 hours. Check the schedule for each product you trade.

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