Risk Management for Futures: Position Sizing, Contract Selection, and Capital Protection

Futures trading can amplify both gains and losses fast — which makes risk management the skill that determines whether you’re still in the game a year from now. In this lesson, Mike breaks down the core principles of managing risk when trading futures contracts.

You’ll learn how to calculate proper position sizes based on your account and risk tolerance, how to choose the right contract (and contract size) for your strategy and capital, and how to structure trades so that no single loss can knock you out. Mike walks through practical examples to show how disciplined risk management protects your capital and keeps you trading with a clear head, even during volatile market conditions.

By the end of this lesson, you’ll have a concrete framework for sizing positions, selecting contracts, and protecting your account — the foundation every futures trader needs before focusing on entries and exits.