When you initially enter the universe of futures prop trading, the first question that comes to mind is: what contracts do these companies actually want you to trade in? I mean, not all futures contracts are equal. Some are more liquid, some jump around like they are insane, and some are so esoteric that you may well be the only one gazing at their charts all day.

Prop firms—both futures-only stores and multi-asset trading groups—are not randomly throwing money around. They're doing so with a purpose in mind, directing traders towards specific contracts. And the kinds of contracts that they'd like you to trade often reveal a great deal about their general business model, their risk tolerance, and how they see you developing as a trader.

So let's break this down in simple terms. We'll look at why prop firms like certain futures contracts, which ones you'll likely be urged to trade, and what this does for your trading career if you want to succeed in the prop game.

Why Prop Firms Care About What You Trade

Before we dive into the actual contracts, let's address the "why." Why should prop firms care which markets you trade? Don't they just want you to trade whatever and whatever?

Not exactly. Here's why:

Liquidity is the name of the game.

 Prop firms don't want you to trade something that's so illiquid that it's a horror show to get in and out of positions. Liquidity guarantees more even fills and tighter spreads, which makes risk management easier to predict.

Risk management.

 Futures can be brutally volatile. Some contracts can wipe out an account with a single sharp move if you’re over-leveraged. Firms tend to funnel traders into contracts where volatility is manageable relative to account size.

Volume and commissions.

 Prop firms make money in different ways, but one angle is through trading volume. The more active the contract, the more opportunities for consistent trading (and commission revenue).

Market familiarity.

Let's get real—if all the new traders at a prop firm are attempting to be experts at weird commodities like orange juice futures, the risk desk at the firm would have their hands full dealing with them. Keeping to the popular contracts ensures that both risk managers and traders are on the same page.

The Big Favorites: Contracts Prop Firms Love

Okay, let's dive into the nitty-gritty of this. These are the futures prop firm contracts nearly every prop firm nearly always advises their traders to trade:

E-mini S&P 500 (ES) and Micro E-mini S&P 500 (MES)

If futures trading has a king, this is the one. The E-mini S&P 500 (symbol: ES) is by far the most widely traded contract in the futures universe.

Why prop firms prefer it:

• Amazing liquidity. You can go in and out with minimal slippage.
• A bazillion volumes on a daily basis, so there's always movement.
• It's correlated to the S&P 500 Futures, so you see the big picture moves.

Why traders prefer it:

• The ES provides ample setups for swing traders, scalpers, and anybody in between. If you're just starting out or have less buying power, the Micro E-mini (MES) provides you with the same action but at a fifth of the contract size.
• Prop firms tend to encourage starters to begin with MES before proceeding with ES, purely to control risk.

Nasdaq 100 (NQ) and Micro Nasdaq (MNQ)

If ES is the king, then NQ is the prince that travels twice as quickly. The Nasdaq futures follow the tech-heavy index, which is a huge deal because they're extremely sensitive to news regarding large-cap tech stocks such as Apple, Microsoft, and Nvidia.

Why prop firms like it:

• High volatility = more opportunity (but also greater risk).
• Massive liquidity.
• Excellent for traders who prefer fast-moving markets.

Why traders like it:

Some individuals thrive on volatility, and NQ certainly provides. As with ES, the micro equivalent (MNQ) is an accessible entry point. Numerous firms actually recommend starting out on MNQ before moving to full contracts.

Crude Oil (CL) and Micro Crude (MCL)

Ah, crude oil—the contract that has destroyed and made so many trading careers. CL is one of those markets that has a personality of its own. It's driven by international politics, OPEC meetings, and even natural disasters.

Why prop firms love it:

• High liquidity.
• Constant price movement.
• A global benchmark that traders from all over the world follow.

Why traders like it:

CL provides obvious intraday trends and volatility that scalpers live for. It's not for amateurs, though. Most firms suggest using micro crude (MCL) first to control risk before attempting the whole beast.

Treasury Futures (ZN, ZB, etc.)

These are the contracts tied to U.S. government bonds, like the 10-year (ZN) and 30-year (ZB). They may not sound as “sexy” as oil or Nasdaq, but trust me—big institutional traders love them.

Why futures trading prop firms love it:

• Deep liquidity.
• Lower volatility compared to equity indexes.
• Excellent diversification if you’re not just glued to stocks.

Why traders like it:

They can offer more stable price action. If the thrill of NQ or CL isn't your thing, then the treasuries may be more your style.

Gold (GC) and Micro Gold (MGC)

Gold is the darling of ages past, and in futures trading, it's no exception.

Why prop firms enjoy it:

• It's among the most actively traded commodities.
• Reacts to macroeconomic themes (inflation, interest rates, geopolitical occurrences).
• Provides consistent opportunities for intraday and swing trading.

Why traders enjoy it:

Gold also trends well, and with the micro version (MGC), you don't have to have a huge account to trade it.

Euro FX (6E)

There are futures contracts for currencies, and the Euro against the U.S. dollar is the biggie.

Why prop firms love it:

• High liquidity.
• Reacts well to world economic news and changes in interest rates.

Why traders like it:

It exposes one to forex-type trading but via the futures exchange so no encountering shady FX brokers.