The standard-sized futures contract traded in the market.
Full contracts offer greater profit potential per tick movement but also come with higher risk. Traders must ensure they have the capital and risk tolerance to trade full contracts effectively.
A trader buys 1 ES contract, where each tick is worth $12.50. If the price moves 10 ticks in their favor, they make $125. However, if it moves 10 ticks against them, they lose $125.
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.
A smaller-sized futures contract (e.g., 1/10th the size of a standard contract), which allows for more flexible risk management.
A set milestone where a trader can increase their contract size or risk, typically based on achieving profits.