We are often asked: “What’s the minimum amount of money I need to start trading futures?”
The broker’s minimum deposit is not the determining factor. What matters most is your available risk capital, your tolerance for losses, and the volatility of the contracts you intend to trade. The “minimum” should be determined by the markets you choose and how you manage risk, not just the lowest number a broker will accept.
(Note: At Optimus Futures, the administrative minimum is $500 for a micro account and $2,000 for a standard account.) Start Futures Trading | Open an Account with a Top Rated Futures Broker
1. Contracts and Volatility
Each futures contract has its own tick size, tick value, and volatility profile. Your account must be large enough to absorb the typical daily swings in the markets you trade.
- Example:
- Micro E-mini S&P 500 (MES) → tick value $1.25; moves of 20–40 points per day are common.
- Crude Oil (CL) → tick value $10; $1–$2 daily swings ($1,000–$2,000 per contract).
- Gold (GC) → tick value $10; $10–$20 daily moves ($1,000–$2,000 per contract).
2. Position Sizing (How Many Contracts to Trade)
Your account size should directly influence the number of contracts you trade.
- A smaller account may mean limiting yourself to a single Micro contract.
- A larger account allows for scaling in and diversifying positions.
3. Drawdowns and Risk
All traders face losing streaks.
- Your account should be sized to handle normal drawdowns without forcing you to stop trading.
- Underfunding means that even a short streak of losses could wipe out your account before your strategy has a chance to work.
FAQ
Q: Can I start with $500?
Yes, if the broker allows it — but you must restrict yourself to very small positions (such as one Micro contract) and accept that you have very little buffer against volatility.
Q: How do I know how much I really need?
Ask yourself:
- What is the contract’s tick value and typical daily volatility?
- How many contracts do I intend to trade at once?
- How much drawdown am I prepared (and able) to sustain?
Q: Why not just focus on the lowest day margins?
Because margins only reflect the minimum to enter a trade, not the actual risk. Volatile products like crude oil, gold, or the S&P can swing hundreds or thousands of dollars in a single day, regardless of margin requirements. (Micro contracts are 1/10th the size and risk, which makes them more approachable for smaller accounts.)
Q: What’s the key takeaway?
Don’t size your account based on the broker’s minimum margin. Size it based on the normal volatility and drawdowns of the contracts you want to trade, and on the amount of risk capital you can afford to put at risk. Keep in mind that in Futures, you can lose more than your initial investment.
There is a substantial risk of loss in futures trading. Past performance is not indicative of future results.