Reading a Contract Spec Sheet
Symbol, size, tick, point value, hours, expirations.
A contract spec sheet tells you exactly what you are trading. Before placing an order, you should know the symbol, contract size, minimum tick, tick value, trading hours, expiration cycle, and settlement type. These details determine how much money is made or lost when price moves.
For example, the E-mini S&P 500 futures contract trades under the ES symbol and has a point value of $50. A one-point move is worth $50 per contract, and a minimum tick of 0.25 points is worth $12.50. The Nasdaq, crude oil, and gold contracts each have different values, so you cannot assume risk is the same across markets.
Reading specs is a safety habit. It prevents sizing mistakes, surprise expiration issues, and confusion about why your P&L is moving faster than expected. Treat the spec sheet like the rulebook for the instrument.