Take Control With Tradovate’s New Mini-to-Micro Contract Fungibility

Fungibility may sound like a technical term, but for prop traders, it unlocks something powerful—real-time flexibility to trade smarter and stay within risk limits. With Tradovate's new Mini-to-Micro Contract Converter, prop traders can now take advantage of contract fungibility to interchange contract sizes within the same product family without liquidating positions or recalculating margins. 

This Tradovate Prop feature puts more control in your hands, helping you scale in or out of trades using a standardized conversion ratio, all while working under a unified risk limit. 

What is contract fungibility? 

In trading, fungibility means you can swap one asset for another of equal value. With Tradovate's new feature, you can convert between standard, mini, and Micro futures contracts—like trading 1 E-mini for 10 Micros—within the same product family. 

Instead of treating each contract size separately for margin and risk limits, the Mini-to-Micro Contract Converter recognizes their notional equivalence. That means if you’re in a mini contract and need to adjust your exposure quickly, you can downshift to Micros without needing to exit your position or start over. 

It’s real-time contract conversion—seamless, intuitive, and built specifically for prop trading. 

Why fungibility matters for prop traders 

Prop traders operate under tight constraints: maximum position limits, strict loss rules, and the constant pressure to trade with precision. Fungibility can help you do all of that (and more) without getting in your own way. 

Here’s how this Tradovate Prop feature can make a difference: 

• Stay in your trade while reducing exposure: Instead of flattening a position, you can scale down to Micro E-mini contracts and stay in the market with less risk. 
• Test your strategies with smaller positions: Trying out a new setup or adjusting to changing market conditions? Start small with Micro contracts, then scale up once you’re confident. 
• Balance liquidity and risk: Advanced traders can mix mini and Micro contracts to fine-tune their sizing while staying within a single position limit framework. 

By making it easier to adapt in real time, fungibility gives prop traders the flexibility to manage risk without sacrificing strategy. 

Trade smarter under one unified risk limit 

Without fungibility, trading across different contract sizes often means recalculating margin requirements or exiting trades just to resize. This can slow down your decision-making and add complexity where you don’t need it. 

With Tradovate’s Mini-to-Micro Contract Converter, that friction can disappear. The platform automatically applies a standardized conversion ratio (e.g., 1 MES = 1/10 ES), so you can adjust your position size dynamically while staying compliant with your firm’s rules. 

Whether you're scaling out of an S&P 500 position or testing an idea in Micro crude oil, you’re working under a single, consistent risk framework. 

Which products are fungible? 

Not all contracts are fungible, but many of the most actively traded futures products are supported. Some examples include: 

• Equity index contracts: MES, MNQ, MYM, M2K 
• Metals: Micro gold (MGC) 
• Currencies: Micro EUR/USD (M6E), Micro GBP/USD (M6B) 
• Energies: Micro crude oil (MCL), Micro natural gas (MNG) 

Conversion ratios are based on notional exposure; for example, 1 E-mini S&P 500 contract = 10 Micro E-mini S&P 500 contracts. 

Prop firms can opt in to fungibility at the vendor level, and all position limit enforcement continues as usual—only now, traders can meet those limits with a mix of sizes instead of just one. 

Fungibility gives you control when it matters most 

Prop trading is as much about discipline as it is about strategy. The Mini-to-Micro Contract Converter is designed to help you: 

• Manage emotions when markets get volatile: Downsize without flattening; keep your edge without breaking the rules. 
• Stay on track to funded: Stay within firm-defined risk parameters while still executing your strategy. 
• Build confidence over time: As you develop as a trader, fungibility lets you scale more naturally, using smaller contracts to test, learn, and improve. 

By building fungibility into your workflow, you can respond to market pressure with precision without losing momentum on your path to getting funded. 

The bottom line for prop traders