A smaller-sized futures contract (e.g., 1/10th the size of a standard contract), which allows for more flexible risk management.
Micro contracts enable traders to fine-tune their position sizing and manage risk more effectively. They are ideal for traders with smaller accounts or those looking to scale gradually.
A trader who normally trades 1 full ES contract but wants to reduce risk can instead trade 10 MES micro contracts, giving them the same market exposure but more granular control over trade exits.
A financial instrument is the entity being bought and sold while trading.
A firm that provides traders with capital to trade financial instruments, such as futures. Traders retain a percentage of the profits they generate, while the firm assumes the risk.
The specific account or evaluation package offered by the prop firm. Plans vary in account size, evaluation difficulty, profit targets, and rules.
The standard-sized futures contract traded in the market.
A set milestone where a trader can increase their contract size or risk, typically based on achieving profits.