E-Mini Nasdaq Contract Specifications; tick value, margin requirements, round term commissions

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Symbol: NQ (CME)
Tick Value: .25 (1800.25)
Cost/Tick: $5.00 usd
Margin: $500 usd/contract
Benefits: low cost per tick
Drawbacks: low cost per tick, not a very efficient way of earning income, low volume
Best Time to Trade: 9:30 — 1230pm & 3:30 — 4pm EST
Favorite Pattern: Trend Continuation Pattern through the highs
Favorite Timeframes: 13-Range for Day Trading, 21 & 34-Range for Swing Trading

The nasdaq market is the least-traded of the e-mini futures markets on the CME exchange.

Much like the mini dow and pound futures, this market is a great learning market, rather than ‘earning’ market….

First, the low cost per tick on the nasdaq makes this a very inefficient means of earning day trading profits. Simply put, if your cost of entry is equal to the cost per tick, this market is too cheap for your cost of doing business.

For example, if you pay $5.00usd for each trade on nasdaq futures, you will spend $20usd to trade 4 contracts each time you buy and sell.

This may not sound like much, but over 100 trades this makes a difference. I need to profit at least 4 ticks just to break even on the trade, so I need to make more money to keep it.
On the flip side the losses are compounded because your 10 tick stop loss now looks like 14 ticks (40% more!!) when you take a stop loss.

Add this up and not only does it cost you more money, but your emotions have an extremely hard time dealing with the fact that you need 4 winners to equal 1 loser.

With that said, this market may not be an effective way of earning income in the long term, but for a new day trader working on a simulator account, this can be a great place to practice, practice, practice.

Use our simple methods on this type of market to spot more patterns and flatten the learning curve of day trading ANY futures markets. The patterns we use never change, they work the same on any market, so this is an excellent way to get more ‘reps’ in your daily learning.

Contact our support team for futures brokers
Click here for E-mini Nasdaq Futures Contract Specifications on the Exchange Website

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Patrick Reynolds says:

Uhhh this guy can't even do math right. If I buy 1 contract it cost me $5 in fees. I need 1 tick to break even. If I buy 30 contracts for $150 in fees I still only need 1 tick to break even. 1 tick x $5 x 30 contracts = 150.

Prince M. Golds says:

It is good for beginners who are afraid of 100$ loss per trade. 50$ loss on fast track trade may sound better than 100$ for a newbie having a small account and weak heart I think. But I love it of course lol

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