---
title: "Contract Specifications Explained | ProFuturesTrader"
url: https://profuturestrader.com/blog/contract-specifications-explained
description: "Understand futures contract specifications — tick size, contract months, and exchange rules every trader must master."
lang: en
---

Back to Blog (https://profuturestrader.com/blog)

Educational: https://profuturestrader.com/blog/category/educational

# Contract Specifications Explained

Drew Rathgeber May 14, 2026 5

Image: Contract Specifications Explained (https://ozknlynmbnyyjhhfdnsu.supabase.co/storage/v1/object/public/blog-images/1778595344498-egt085spwso.jpg)

Understand futures contract specifications — tick size, contract months, and exchange rules every trader must master.

### Key Things You Must Know

Here’s a simple breakdown of the most important details:

- **Contract Size:** How much of the asset one contract controls. Example: One Crude Oil (CL) contract = 1,000 barrels of oil. One E-mini S&P 500 (ES) contract ≈ $50 × S&P 500 index.
- **Tick Size & Tick Value:** The smallest price movement and how much it’s worth. Example: Crude Oil moves in 0.01 point ticks ($10 per tick). Gold moves in $0.10 ticks ($10 per tick).
- **Trading Hours:** When the market is open. Many futures now trade nearly 24 hours, Sunday evening to Friday afternoon.
- **Expiration & Rollover** Every contract has an expiry date. You must close, roll to the next month, or take physical delivery (rare for retail traders).
- **Margin Requirements:** Initial margin (to open) and maintenance margin (to keep the position). These change with volatility.
- **Delivery / Settlement:** Some contracts settle in cash (like stock index futures). Others can involve physical delivery (oil, gold, grains).

### Real-World Examples

Crude Oil (CL), 1,000 barrels, $10-tic, Energy Traders

E-mini S&P (ES), $50xindex, $12.50-tic, Stock Market Traders

Gold (GC), 100 troy ounces, $10-tic, Metal Traders

Micro e-mini ES, $5xindex, $1.25-tic, Beginners

### Why Contract Specs Matter

- They determine your **risk and reward**. One wrong contract size can turn a small move into a huge loss.
- They help you calculate **profit/loss** accurately.
- They prevent nasty surprises (like unexpected delivery notices on wheat contracts).
- They let you compare contracts and choose the right one for your account size.

### Pro Tips for Beginners

1. Always check the specs on the exchange website or your broker’s platform before trading a new contract.
2. Start with **Micro contracts** if you’re new — they’re much smaller and easier on smaller accounts.
3. Use a **position size calculator** that includes tick values.
4. Watch the **rollover dates** — liquidity often drops in the expiring contract.

Contract specifications may look technical at first, but they’re actually your best friend. Once you understand them, you trade with confidence instead of confusion.

Master the specs, and you’ll avoid rookie mistakes and trade futures like a pro.

Contract Specifications URL: https://profuturestrader.com/contract-specifications

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