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How Does Leverage Work in Futures Trading?

Learn how leverage works on futures contracts and what it means for your MILTRADERS account.

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Written by MILTRADERS Team

Futures contracts are inherently leveraged instruments. A small initial margin lets you control a much larger notional value of the underlying asset.

Example: A single Mini ES (S&P 500) contract represents $50 Γ— the index price. At 4,500, that's a notional value of $225,000 β€” controlled with an initial margin of just a few thousand dollars.

This leverage means small price moves can produce significant profits or losses. A 10-point move on 1 Mini ES = $500.

Leverage on MILTRADERS: On MILTRADERS, you trade with simulated capital. Your effective leverage is controlled by the maximum contracts allowed for your account size (4 / 8 / 12 Mini for 50K / 100K / 150K), the EOD Trailing Drawdown, and standard CME margin requirements applied through Volumetrica.

Use leverage responsibly. Trading with maximum size on every trade is considered gambling behavior and is prohibited.

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