RTY futures explained: the Russell 2000 small-cap contract
RTY tracks 2,000 smaller US companies. They borrow more and sell mostly at home, so the Russell often reacts to interest rates and the US economy first.
At a glance
| Item | RTY (E-mini Russell 2000) |
|---|---|
| What it is | A futures contract on the Russell 2000, an index of small US companies |
| Tick size | 0.10 index points |
| One tick is worth | $5.00 ($50 per full point) · micro M2K: $0.50 |
| Busiest hours (ET) | 9:30–11:00 am and 3:00–4:00 pm |
| What moves it most | Interest rates, US growth data, credit conditions, the Fed |
| Trading hours | Sunday 6 pm to Friday 5 pm ET, daily break 5–6 pm ET |
Check cmegroup.com for current specs.
RTY and M2K
The micro Russell, M2K, is one tenth of RTY.
- RTY: tick 0.10 = $5, so $50 a point.
- M2K: tick 0.10 = $0.50, so $5 a point.
- 10 M2K = 1 RTY in dollar terms.
What moves it
Small companies live in a different world from giant tech firms.
- Interest rates. Many small companies rely on loans. When rates rise, their costs go up. So the Russell often reacts strongly to Fed news and bond yields.
- The Fed. FOMC statement at 2:00 pm ET, press conference at 2:30 pm. See CPI and FOMC days.
- US growth data. Most small caps sell inside the US, so jobs, retail sales and CPI (8:30 am ET) hit them directly.
- Risk mood. When investors feel bold, small caps often get bought. When they get careful, small caps are often sold first.
When it's busiest
Most volume comes after the stock market opens at 9:30 am ET and in the final hour into 4:00 pm. Overnight, RTY is usually much thinner than ES. ET hours don't move with daylight saving.
Its personality
- Jumpy. Small caps tend to swing more than the big-company indexes.
- Choppy ranges, then fast moves. RTY can chop sideways for days, then move hard when rate expectations change.
- Wider gaps at quiet hours. Fewer traders overnight means a bigger gap between buy and sell prices.
- Its own path. On some days RTY rises while NQ falls, or the reverse. Don't assume they agree.
- Expires quarterly: March, June, September, December.
Reading it with our method
RTY's chop is a good reason to lean on the bigger chart. Mark the last places price turned around on the daily chart. If it's making higher highs and higher lows, look for buys. If neither, it's a range, and sitting out is a fine choice. See multiple timeframe analysis.
Only a candle body close past a level counts.
Size from the stop. Example: stop 8 points away = 80 ticks. On RTY that's 80 × $5 = $400. On M2K, $40. Plan allows $80? That's 2 M2K. Use the futures tick value calculator. A math example, not a promise.
Common mistakes
- Reading a range as a trend. RTY spends a lot of time going sideways. Check the bigger chart.
- Forgetting rate days. A Fed or CPI surprise can move small caps more than the S&P.
- Copying ES stops. RTY's swings are often wider in percent.
- Trading the thin night session at full size.
Questions
How much is one RTY point worth?
$50 per point. One tick is 0.10 points, worth $5. The micro M2K is $5 per point.
What is the Russell 2000?
An index of about 2,000 smaller US public companies. It's a common way to track how small US businesses are valued.
Why do small caps react to interest rates?
Many smaller companies borrow more and earn mostly in the US. Higher rates raise their costs and can slow their customers.
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