ES vs NQ: which index fits your trading style & account size
here's the thing about choosing between ES and NQ... after working with thousands of traders, I can tell you that most people pick the wrong one for their situation.
they get caught up in the hype around NQ's big moves or think ES is "boring" because it doesn't gap $50 overnight. but here's what really matters: which one fits your account size, your risk tolerance, and your trading style?
look, I get it. when you see NQ ripping 100+ points in a session, it's tempting. but I've watched too many traders blow up their accounts chasing those moves without understanding what they're actually getting into.
that's why we're going to break this down with real data from our reports — not just generic advice you can find anywhere. we'll look at actual ORB performance, gap fill statistics, and volatility patterns so you can make an informed decision based on facts, not feelings.
table of contents
- what are ES and NQ futures?
- key differences that matter for day traders
- why NQ moves faster than ES (volatility breakdown)
- which should you trade based on your style
- ES vs NQ: real data from our reports
- micros: MES and MNQ explained
- frequently asked questions
what are ES and NQ futures?
ES (E-mini S&P 500) basics
ES tracks the S&P 500 index, which includes the 500 largest publicly traded companies in the US. we're talking about everything from AAPL and MSFT to healthcare, financials, energy - the whole market.
each point move in ES equals $50, and the minimum tick size is 0.25 points, which means each tick is worth $12.50. so if ES moves from 5800.00 to 5800.25, that's $12.50 per contract.
what makes ES appealing is that broader market exposure. when you're trading ES, you're essentially trading the entire US economy, not just one sector.
NQ (E-mini NASDAQ-100) essentials
NQ tracks the NASDAQ-100, which is the 100 largest non-financial companies listed on the NASDAQ. but here's the kicker - it's heavily weighted toward tech giants like AAPL, MSFT, NVDA, GOOGL, and AMZN.
each point move in NQ equals $20, with the same 0.25-point tick size, making each tick worth $5. so when NQ moves from 21000.00 to 21000.25, that's $5 per contract.
that tech concentration is what gives NQ its personality... and its volatility. when tech earnings come out or there's AI news, NQ can move super quickly while ES barely budges.
trading hours and sessions
both ES and NQ trade nearly 24 hours a day, Sunday through Friday. the key sessions you need to know:
- overnight session: 6:00 PM ET Sunday to 9:30 AM ET Monday (and daily thereafter)
- regular trading hours (RTH): 9:30 AM to 4:15 PM ET
- after-hours: 4:15 PM to 6:00 PM ET
most of the action happens during RTH when institutional volume is heaviest, but overnight sessions can set up great trades, especially around economic data releases.
key differences that matter for day traders
tick values and dollar risk per move
this is where things get interesting. a lot of traders think NQ is "cheaper" because each tick is only $5 compared to ES at $12.50. but that's backwards thinking.
here's what actually matters: dollar risk per point movement.
if ES moves 10 points, that's $500 per contract. if NQ moves 10 points, that's $200 per contract. but NQ typically moves a lot more than 10 points when it moves.
let me put this in perspective: if you're risking 20 points on an ES trade, that's $1,000 per contract. if you're risking 50 points on an NQ trade (which is pretty normal given its volatility), that's $1,000 per contract. same dollar risk, different instruments.
margin requirements (actual broker ranges)
margin requirements vary by broker, but here's what you can typically expect:
ES initial margin usually runs $12,000-$15,000 per contract, while NQ typically requires $17,000-$20,000. that's for overnight positions.
intraday margins are much lower - sometimes as little as $500-$1,000 for both, as long as you close your positions before the session ends.
this is one of the biggest advantages of futures trading over other instruments - you get massive leverage with reasonable margin requirements.
liquidity and spread differences
ES generally has tighter bid-ask spreads, especially during RTH. you'll typically see 0.25-point spreads (one tick) most of the time.
NQ is still very liquid during RTH, but you might occasionally see wider spreads during slower periods or overnight sessions. both are liquid enough that you shouldn't have trouble getting filled on reasonable size, and market orders should fill instantly.
the real difference comes down to how these spreads affect your trading. if you're scalping for small moves, every tick matters. if you're swing trading for larger moves, the spread difference becomes less relevant.
why NQ moves faster than ES (volatility breakdown)
index composition drives behavior
ES represents the entire US stock market across all sectors. when tech sells off but healthcare and utilities hold up, ES might only drop moderately.
NQ, on the other hand, is concentrated in growth and tech stocks. when NVDA reports earnings or there's AI news, NQ can gap 100+ points while ES barely reacts.
average true range (ATR) comparison
let’s compare the average true range (ATR) for both ES and NQ using edgeful reports.
- ES has a 14-day average true range of $53.89
- 75% of the time, the ATR is respected
let’s now check out NQ:
- NQ has a 14-day average true range of $263.87
- 73% of the time, the ATR is respected
just by analyzing ATR, you can clearly see the character differences between NQ and ES.
which should you trade based on your style
scalpers and momentum traders
if you're looking to scalp quick moves and you can handle the speed, NQ might be your instrument. the faster pace means more opportunities, but it also demands quicker decision-making.
the key is having your entry and exit rules dialed in before you start. with NQ, you don't have time to think - you have to react.
trend followers and swing traders
for trend following and swing trading, ES often provides cleaner, more predictable moves. the trends tend to develop more slowly and persist longer, giving you time to manage your positions.
I always tell new traders: nobody should trade NQ until they can trade ES profitably. master the fundamentals on the smoother instrument first.
small accounts and prop traders
account size matters here. if you're working with a small account or trying to pass a prop firm evaluation, the lower dollar-per-tick value of NQ might seem appealing. but remember - it moves more, so your dollar risk can still be substantial.
for prop traders dealing with daily loss limits, you need to consider how quickly each instrument can hit those limits. NQ can take you from break-even to max loss faster than ES.
systematic and algorithmic traders
if you're running automated trading strategies or algorithms, backtesting becomes crucial. some strategies that work great on ES might not translate well to NQ due to the different volatility characteristics.
I've been running our ORB algorithm on NQ with great results (more on this below), but it required specific optimizations for NQ's behavior patterns.
ES vs NQ: real data from our reports
this is where edgeful really shines - we track actual performance data across both instruments so you can see what's working and what's not.
opening range breakout (ORB) performance comparison
our ORB report shows some fascinating differences between ES and NQ performance:
ES ORB stats (6-month data):
- total P&L: 198% on 1 ES contract
- total trades: 159
- profitable trades: 76.73%
- profit factor: 1.676
- max drawdown: 32.22%
now compare these with NQ:
NQ ORB performance: I've been running our ORB algorithm on NQ with optimized settings for 18 months. here are the results from Oct 1 - September 3, 2025:
- total P&L: 486% on 1 NQ contract
- total trades: 152
- profitable trades: 77.63%
- profit factor: 1.93
- max drawdown: 24.12%
reminder: these are optimized settings. I share these updates with you once you upgrade to our algos. check it out here.
the differences are pretty clear:
- trading the same contract amount, on the same setup, and same customizations leads to better performance on NQ.
which makes sense given the ATR data we covered above — NQ has a wider daily range.
gap fill statistics: ES vs NQ
here's where the data gets really interesting:
ES Gap Fill stats:
- over the last 6 months, 59% of gaps up have filled on ES
- over the last 6 months, 60% of gaps down have filled on ES
NQ Gap Fill performance:
- over the last 6 months, 59% of gaps up have filled on NQ
- over the last 6 months, 57% of gaps down have filled on NQ
not much difference between the two reports here — which is surprising but that’s why we trade with data, not by what we “think” the data is.
but here's the crucial part - these stats change over time. in December 2024, I started noticing gap fill performance degrading across both instruments. this is exactly why tracking dynamic data matters.
micros: MES and MNQ explained
what are micro futures?
micro futures are 1/10th the size of their E-mini counterparts. they follow the same price movements but with much smaller dollar impact per tick.
- MES (Micro E-mini S&P 500): each tick worth $1.25
- MNQ (Micro E-mini NASDAQ-100): each tick worth $0.50
they're perfect for learning, small accounts, or when you want to fine-tune position sizing.
MES vs ES and MNQ vs NQ
the math is straightforward:
- 10 MES contracts = 1 ES contract in dollar terms
- 10 MNQ contracts = 1 NQ contract in dollar terms
this gives you incredible flexibility in position sizing. instead of being stuck with full contract sizes, you can scale into positions gradually or manage risk more precisely.
practical applications
I recommend micros for:
- learning: get real market experience without the full dollar risk
- strategy testing: paper trading with real money but smaller risk
- prop firm evals: many funded account challenges allow micros
- portfolio balancing: fine-tune your overall position size
think of micros as training wheels that you never have to take off. even experienced traders use them for position management.
frequently asked questions
are ES and NQ correlated?
yes, but the correlation varies based on market conditions. during broad market moves, they tend to move together. but when sector rotation happens or tech-specific news breaks, they can diverge significantly.
the correlation is typically highest during major market events (Fed announcements, economic data) and lowest during earnings seasons when tech can move independently.
how much is one tick of ES vs NQ worth?
ES: $12.50 per 0.25-point tick NQ: $5 per 0.25-point tick MES: $1.25 per 0.25-point tick MNQ: $0.50 per 0.25-point tick
but remember - tick value isn't everything. what matters is total dollar risk based on how far each instrument typically moves.
which is better for beginners?
ES, hands down. here's why:
the smoother price action gives you more time to think and react. the trends tend to be cleaner and more predictable. and when you make mistakes (and you will), they're typically less costly on ES.
as I always say - master ES first, then consider NQ if your trading style demands it.
what's the NQ equivalent of trading 1 ES contract?
this depends on how you measure "equivalent":
dollar risk per tick: about 2.5 NQ contracts equal 1 ES contract ($12.50 vs $5 per tick) notional value: varies with price levels, but ES typically represents less notional value
most traders think in terms of dollar risk, so the 2.5:1 ratio is a good starting point.
when do ES and NQ move most during the day?
both instruments are most active during:
- market open (9:30-10:30 AM ET): highest volume and volatility
- lunch reversal (11:30 AM-1:00 PM ET): often see direction changes
- power hour (3:00-4:00 PM ET): institutional positioning before close
- overnight during major news or economic data releases
NQ tends to have more overnight volatility due to tech earnings and news flow.
key takeaways
let's break this down into actionable insights:
choose ES if you're:
- new to futures trading
- prefer smoother, more predictable price action
- trading with systematic or algorithmic approaches
- working with prop firm rules that penalize quick losses
- focused on broad market analysis and macro themes
choose NQ if you're:
- experienced with volatility and fast markets
- scalping or momentum trading focused
- comfortable with wider stops and quick reversals
- trading around tech earnings and growth themes
- can handle the psychological pressure of rapid moves
account size guidelines:
- under $25,000: start with micros (MES/MNQ) to learn
- $25,000-$100,000: consider 1-2 ES contracts or 2-4 NQ contracts max
- over $100,000: size according to 1-2% risk per trade regardless of instrument
risk management essentials:
- ES: typically 10-20 point stops depending on strategy
- NQ: typically 25-50 point stops to account for volatility
- always calculate total dollar risk, not just point risk
- use proper margin requirements for planning
the bottom line? there's no "best" choice - only what fits your situation. most successful traders I know started with ES, got profitable, then decided whether NQ's characteristics matched their evolved trading style.
