NQ Futures Trading — A Beginner's Guide to the NASDAQ 100
NQ — the E-mini NASDAQ 100 futures contract — is the most popular futures instrument for day traders. It tracks the NASDAQ 100 index, which is dominated by technology companies like Apple, Microsoft, and Nvidia. NQ is known for its volatility, liquidity, and the quality of setups it produces during key trading windows.
NQ Contract Specifications
Understanding the contract specs is the foundation of trading NQ. Each tick on NQ is worth $5.00. The minimum price increment (tick size) is 0.25 points. A full 1-point move on NQ is worth $20 per contract. A 10-point move is $200 per contract.
- Tick size — 0.25 points
- Tick value — $5.00
- 1 point = 4 ticks = $20
- 10 points = 40 ticks = $200
MNQ — The Micro NASDAQ
MNQ is the Micro E-mini NASDAQ — exactly 1/10th the size of NQ. Each tick on MNQ is worth $0.50. This makes MNQ the ideal starting point for new traders who want to learn NQ mechanics without the full contract risk. Many prop firms offer both NQ and MNQ accounts.
Trading Hours
NQ futures trade nearly 24 hours a day, 5 days a week. The official trading hours are Sunday 6:00 PM ET through Friday 5:00 PM ET with a daily maintenance break from 5:00 PM to 6:00 PM ET. The highest volume and most tradeable period is during the New York Regular Session: 9:30 AM to 4:00 PM ET.
What Moves NQ?
NQ is primarily driven by:
- Economic releases — CPI, NFP, FOMC decisions cause immediate large moves
- Tech earnings — Apple, Microsoft, Nvidia earnings move the entire index
- Fed policy — rate expectations directly impact tech valuations
- Risk sentiment — VIX spikes cause NQ to sell off rapidly
NQ and Prop Firm Trading
NQ is the most popular instrument among futures prop firm traders because of its volatility and clear market structure. The intraday ranges are large enough to produce meaningful profits on small position sizes, while the liquidity ensures clean fills even with multiple contracts. Most major prop firms support NQ trading.