Index futures are available in different contract sizes to accommodate traders with varying capital levels and risk preferences. Understanding these size variations can help you choose the most suitable trading instrument for your investment strategy.
What Are Contract Size Variations?
In the futures market, many popular indices offer multiple contract sizes:
Standard contracts: The original, full-sized futures contracts
Mini contracts: Typically one-fifth the size of standard contracts
Micro contracts: Usually one-tenth the size of mini contracts (or one-fiftieth of standard contracts)
Example: Hang Seng Index Contracts
The Hang Seng Index (HSI), Hong Kong's primary stock market benchmark, illustrates this concept well. While the standard HSI futures contract represents the full index value, smaller variations like mini and micro contracts are available on some exchanges. These smaller contracts allow retail investors to participate in Hong Kong equity index trading with significantly reduced capital requirements.
Why Different Sizes Matter
These varying contract sizes serve different purposes:
Standard contracts are typically used by institutional investors and professional traders
Mini contracts provide accessibility for retail traders and smaller institutions
Micro contracts offer the lowest entry barrier for individual investors
This tiered structure enables traders to:
Manage position sizes more precisely
Control risk exposure more effectively
Access markets that might otherwise require prohibitive capital
What's Available at FXTRADING.com
Important note: FXTRADING.com currently offers index products with standard contract sizes only. Mini or micro contract variations are not available on our platform. All index futures trading on our platform uses full-sized, standard contracts.
If you have questions about specific contract specifications or margin requirements for our index products, please contact our support team via Live Chat.