FREE EDUCATION
Futures fundamentals, explained clearly.
Everything below is free and open to everyone — no membership required. This page covers the core concepts every futures trader should understand before studying any framework.
This page is provided for free educational purposes only. It does not constitute personalized financial advice, and futures trading involves substantial risk of loss.
01 / CONTRACT BASICS
What a futures contract actually is
A futures contract is an agreement to buy or sell a set quantity of an asset at a set price on a future date. Traders rarely hold contracts to delivery — most positions are opened and closed for price exposure, not physical delivery of the underlying asset.
02 / LOT SIZE & CONTRACT SIZE
What one contract actually represents
Contract size defines how much of the underlying a single contract controls — for example, the E-mini S&P 500 (ES) represents $50 per index point, while the Micro E-mini (MES) represents $5 per point. Knowing contract size is essential before estimating position risk.
03 / TICK SIZE & TICK VALUE
The smallest price move that matters
A tick is the minimum price increment a contract can move. Each tick has a dollar value tied to the contract’s size — for ES, one tick (0.25 points) equals $12.50. Multiplying ticks moved by tick value converts price movement into dollar terms.
04 / MARGIN & LEVERAGE
Why futures require less capital upfront
Margin is a deposit required to open a position, not a down payment on the contract’s full value. This creates leverage — small price moves can produce outsized gains or losses relative to the margin posted, which is why position sizing matters more in futures than in many other markets.
05 / TRADING SESSIONS & VOLUME
When the most volume typically trades
Index futures like ES and NQ trade nearly 24 hours, but volume is not evenly distributed. The heaviest volume typically occurs during the New York cash session open (9:30–11:00 AM ET) and around the close, with the overlap of London and New York sessions also producing elevated activity. Overnight hours are usually thinner and can see wider spreads.
06 / ORDER TYPES
Market, limit, and stop orders
A market order fills immediately at the best available price. A limit order only fills at a specified price or better, controlling entry cost but risking non-execution. A stop order triggers a market or limit order once price reaches a set level, commonly used to define invalidation points.
07 / READING A CANDLESTICK CHART
The anatomy of a single candle
Each candle shows open, high, low, and close for a chosen timeframe. The body reflects the range between open and close, while wicks show the extremes reached during that period. Comparing candle size and wick length across a session helps gauge conviction and rejection.
08 / COMMON TERMINOLOGY
Terms you’ll see across our research
Liquidity refers to price levels where resting orders are likely concentrated. Displacement describes a fast, decisive price move. A fair value gap (FVG) is an imbalance left behind by that move. Invalidation is the level that proves a scenario wrong. These terms recur throughout every ConfluX framework.
09 / RISK MANAGEMENT BASICS
Why position size matters more than being right
Even a well-documented setup can fail. Defining a stop before entry, sizing a position so that a loss stays survivable, and never risking capital needed elsewhere are foundational habits that matter more than any single framework’s win rate.
10 / PROP FIRMS
How prop firms and funded challenges work
A beginner-friendly breakdown of evaluation phases, profit targets, drawdown rules, payout structure, and what to check before choosing a firm.
READ THE FULL GUIDE →
11 / TOOL
Futures lot size calculator
A free tool to help size a futures position based on your account risk and stop distance, for any instrument.
TRY THE CALCULATOR →