MNQ Basics (Fast Facts)
- Symbol: Micro E-Mini Nasdaq-100 (MNQ)
- Tick size / value: 0.25 index points per tick = $0.50/tick (→ $2.00 per 1.00 point)
- What this means: A 10-point stop on 1 MNQ risks ≈ $20 before fees.
Day Margin vs. Exchange (Overnight) Margin
- Day-trading margin is a broker policy (often much lower) and applies intraday only.
- Exchange/maintenance margin applies when you hold past the session. It’s far higher.
- Plan your capital so you never need to rely on ultra-low day margin to survive normal swings.
The Right Way: Risk-Based Capital
Pick a fixed risk per trade (typically 0.5–1% of account). Track results in R-multiples (e.g., +2R, –1R) to keep psychology clean across markets.
Position size formula
Contracts = floor( AccountRisk $ ÷ (StopPoints × $2.00 per point) )
Example: Account $3,000, risk 1% → $30. With a 10-point stop (=$20/contract):
Contracts = floor(30 ÷ 20) = 1
Sample Capital Plans (No Overnight)
These are pragmatic starting points assuming common 8–15 point MNQ stops and 0.5–1% risk per trade:
- 1 contract: ~$2,500–$3,500 account
- 2 contracts: ~$5,000–$7,000 account
- 3 contracts: ~$7,500–$10,500 account
Tip: If your sizing math forces “tiny” stops to fit risk, the setup likely isn’t robust—skip it.
Pitfalls to Avoid
- Funding to minimum day margin and then over-leveraging.
- Adding to losers (increase risk while edge is worse).
- Ignoring commissions/slippage in tight targets.
- Moving stops off invalidation to “give it more room.”
30-Second MNQ Pre-Trade Checklist
Exact invalidation price = stop
Risk set to 0.5–1% / 1R
Target offers ≥2R (or pass)
Position size from the formula—no guessing
Daily max loss 2–3R; stop if hit
Scale only after +1R (never add to losers)
Journal R, MAE/MFE, rule adherence
Bottom line: Don’t ask, “What’s the minimum to open MNQ?” Ask, “What capital keeps me consistent at 0.5–1% risk with ≥2R targets?” That’s how you stay in the game—and grow.
Kimatix Trading — Trade the plan, not the hope.