NQ futures explained: what they are and how they trade
May 2026
NQ futures — the E-mini Nasdaq 100 contract — are among the most actively traded futures instruments in the world. For retail traders and prop firm traders alike, NQ offers deep liquidity, significant leverage and defined trading hours. Here's what you need to know before trading it.
What NQ futures actually are
NQ is a futures contract that tracks the Nasdaq 100 index — the 100 largest non-financial companies listed on the Nasdaq exchange. It trades on the Chicago Mercantile Exchange (CME). When you buy one NQ contract, you're taking a position equivalent to $20 times the current Nasdaq 100 index value. At an index value of 20,000, one NQ contract represents $400,000 of notional exposure.
NQ contract specifications
| Specification | NQ (E-mini) | MNQ (Micro E-mini) |
|---|---|---|
| Contract multiplier | $20 per index point | $2 per index point |
| Tick size | 0.25 index points | 0.25 index points |
| Tick value | $5.00 | $0.50 |
| Notional value (index at 20,000) | ~$400,000 | ~$40,000 |
| Typical intraday margin | $1,000–$2,000 | $100–$200 |
| Exchange | CME (Globex) | CME (Globex) |
The MNQ (Micro E-mini Nasdaq 100) is 1/10th the size of NQ and is the standard starting point for retail and prop firm traders. Most prop firms fund MNQ or NQ positions depending on account size — MNQ is common on $25K–$50K accounts, NQ on $100K+ accounts.
Trading hours
- Regular trading hours (RTH): 9:30 AM – 4:00 PM ET (New York), Monday–Friday
- Extended/Globex hours: Sunday 6:00 PM – Friday 5:00 PM ET (nearly 24 hours)
- Daily settlement break: 4:15 PM – 4:30 PM ET
- Most professional traders focus on RTH — this is where 80%+ of volume trades and spreads are tightest
- Overnight (Globex) sessions trade but with lower volume and wider bid-ask spreads
How NQ moves — volatility characteristics
NQ is more volatile than its sister contract ES (E-mini S&P 500) because the Nasdaq 100 is concentrated in high-growth technology companies. A 1% move in the index is worth $4,000 on a single NQ contract ($400 on an MNQ). Average True Range (ATR) on the NQ typically runs 200–400 points per day, or $4,000–$8,000 per contract — significant leverage that requires strict position sizing.
✅ Start with MNQ
Most prop firms that fund NQ trading also offer MNQ accounts. Starting with MNQ allows you to trade the same chart, the same setups and the same market with 1/10th the financial exposure. A 10-point loss on MNQ costs $20. The same loss on NQ costs $200. Use MNQ to validate your strategy before scaling to NQ.
Who trades NQ and why
- Day traders: NQ's high volatility and tight spreads during RTH make it ideal for intraday strategies
- Prop firm traders: most futures prop firm evaluations allow NQ/MNQ and it's the most commonly traded instrument
- Institutional hedgers: fund managers use NQ to hedge Nasdaq 100 equity exposure
- Swing traders: NQ can be held overnight but requires margin management and awareness of gap risk
Key risk factors
- Leverage: the notional value per contract is many times the margin required — losses scale accordingly
- Gap risk: NQ can gap significantly at the open based on overnight news (Fed announcements, earnings from major tech companies)
- Expiration: NQ futures expire quarterly (March, June, September, December). Traders must roll contracts before expiration
- Correlation with tech: NQ is heavily influenced by Apple, Microsoft, Nvidia, Amazon and Meta — earnings and macro events affecting these companies drive large moves
NQ vs ES — which to trade?
NQ has higher volatility and larger point moves — better for traders with wider targets and larger potential profits per trade. ES (S&P 500) is slower moving and more predictable, often preferred by newer traders or those with tighter risk parameters. Most prop firm traders choose NQ specifically for the larger per-point value; most risk management education recommends starting with ES or MNQ.
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