Mike | The Lab
Published on
Jun 25, 2025
How much capital do I need to start trading futures?
Margin, leverage, and broker requirements are the three main factors that determine the answer, thus it is not a straightforward and fixed figure.
Let us dissect each one.
What Is Margin in Futures Trading?
The bare minimum of funds required in your account to initiate and sustain a futures trade is known as the margin. Futures are extremely capital-efficient since you are only paying a fraction of the contract's total value.
Two primary margin categories exist:
Intraday Margin
The minimum balance required by the broker to hold a position during the regular trading hours.
Initial Margin
The minimum per-contract amount set by the exchange to hold a position overnight.
How Does Leverage Work in Futures Trading?
Leverage allows traders to control a large notional value with relatively small margin capital. It’s a powerful tool, but it must be used carefully and aligned with your risk tolerance, available capital, and trading strategy.
Here’s the formula to calculate leverage:
Leverage = Notional Value / Initial Margin Requirement
Practical Example:
Let’s say you have $20,000 in trading capital. Without leverage, you could buy an asset worth exactly $20,000.
With leverage, you can control much more.
For instance, you could trade 1 contract and gain exposure up to $363,000, calculated as:
Leverage × Contract Size
Broker Requirements:
Let’s explore the margin requirements of a broker, in this case we are going to explore the Intraday and Initial Margin offered by our partner NinjaTrader
Margin Requirements at NinjaTrader :
Contract | Intraday Margin | Initial Margin |
|---|---|---|
E-Mini (ES) | $1,000 | $24,420 |
Micro E-Mini (MES) | $100 | $2,442 |
As the table shows, NinjaTrader allows you to get started with relatively low capital, especially using Micro E-Mini contracts which is ideal for traders with smaller accounts or those still developing their skills.
TL;DR
The answer depends on the contract type, trading style, risk management, and broker policy.
That said, with Micro Futures and brokers like NinjaTrader, you can realistically start trading with under $1,000 for intraday strategies.
Just keep in mind: low capital doesn’t mean low risk. Leverage magnifies both gains and losses.
