NQ Futures Trading
Master trading the E-mini Nasdaq-100 - the most volatile major index futures contract for tech-focused traders
What Are NQ Futures?
NQ futures (E-mini Nasdaq-100) are futures contracts that track the Nasdaq-100 index, a market-capitalization-weighted index of the 100 largest non-financial companies listed on the Nasdaq stock exchange. Launched by the CME Group in 1999, NQ has become one of the most popular futures contracts among active traders.
The Nasdaq-100 is heavily weighted toward technology companies, with giants like Apple, Microsoft, Amazon, Nvidia, and Meta making up a significant portion of the index. This concentration makes NQ futures particularly sensitive to tech sector news and earnings, resulting in higher volatility compared to the broader S&P 500 (ES) futures.
Each NQ contract is valued at $20 multiplied by the Nasdaq-100 index value. With the index around 18,000, one NQ contract controls approximately $360,000 worth of exposure, making it a powerful instrument for speculation and hedging.
NQ Futures Contract Specifications
| Contract Symbol | NQ |
| Contract Size | $20 x Nasdaq-100 Index |
| Tick Size | 0.25 index points ($5.00) |
| Point Value | $20 per point |
| Trading Hours | Sunday 6PM - Friday 5PM ET |
| Day Trade Margin | Varies by broker |
| Overnight Margin | ~$20,570 (changes frequently) |
Margin Disclaimer
Margin requirements change frequently based on market volatility and vary by broker. Always verify current margins with your broker before trading.
NQ vs ES: Key Differences
| Factor | NQ (Nasdaq-100) | ES (S&P 500) |
|---|---|---|
| Point Value | $20 | $50 |
| Daily Range | 150-400+ points | 30-80 points |
| Volatility | Higher | Lower |
| Sector Focus | Tech-heavy | Diversified |
Why Trade NQ Futures?
Higher Volatility
NQ typically moves 3-4x more points than ES daily, creating more trading opportunities for active traders.
Tech Exposure
Trade the most innovative companies in the world - Apple, Microsoft, Nvidia, Amazon - through a single instrument.
Lower Dollar Risk Per Tick
At $5 per tick vs ES $12.50, you can use tighter stops with less dollar risk per position.
Strong Trends
Tech stocks tend to trend strongly, making NQ ideal for momentum and trend-following strategies.
Earnings Season Action
Major moves around FAANG earnings create high-probability setups with predictable volatility.
Global Market Leader
US tech leads global markets. NQ often moves first and other indices follow.
NQ Futures Trading Strategies
Momentum Trading
NQ responds well to momentum strategies due to its volatile nature. When tech leaders like Apple or Nvidia make big moves, NQ follows with strong directional momentum that can persist for hours.
Gap and Go
NQ frequently gaps up or down on overnight news. These gaps often continue in the same direction during the first hour of trading, especially on high-volume days.
Mean Reversion at Extremes
After extended moves, NQ often reverts to key levels like VWAP or previous day close. Look for reversal setups when NQ is stretched 1-2% from the daily open.
Correlation Trading
Monitor mega-cap tech stocks (AAPL, MSFT, NVDA, AMZN) for leading signals. When multiple leaders break in one direction, NQ typically follows.
Risk Management for NQ Futures
NQ volatility cuts both ways. Proper risk management is essential:
Frequently Asked Questions
What is NQ futures?
NQ futures (E-mini Nasdaq-100) are futures contracts that track the Nasdaq-100 index, which includes 100 of the largest non-financial companies listed on Nasdaq. Each NQ contract is worth $20 times the index value.
How much is one NQ point worth?
One full point in NQ futures is worth $20 per contract. The minimum tick size is 0.25 points, worth $5 per tick. A 10-point move equals $200 per contract.
What is the difference between ES and NQ futures?
ES tracks the S&P 500 (broad market), while NQ tracks the Nasdaq-100 (tech-heavy). NQ is more volatile with larger point moves. ES is $50/point while NQ is $20/point, but NQ moves more points per day.
Why is NQ more volatile than ES?
NQ is heavily weighted toward technology and growth stocks, which tend to be more volatile. The top holdings include Apple, Microsoft, Amazon, and Nvidia, which can make large moves on earnings or news.
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Margin & Commission Disclaimer
Margin requirements and commissions change frequently. Verify current rates with your broker.
Risk Disclosure: Trading involves substantial risk of loss and is not suitable for all investors. This content is for educational purposes only and does not constitute financial advice.
Last updated: December 2025