10-Year Treasury Note (ZN) — Futures Prop Firm Guide

The 10-Year Treasury Note futures (ZN) is one of the most liquid and actively traded interest rate instruments in the world, representing the benchmark for U.S. government debt. Futures prop traders gravitate toward ZN for its exceptional liquidity, tight spreads, and strong technical patterns that provide consistent trading opportunities across multiple timeframes.

Contract Specifications

Each minimum price move in ZN is worth $15.63 per contract. This directly affects how quickly you can approach your drawdown limit.

The 10-Year Treasury Note futures contract represents $100,000 face value of U.S. Treasury notes with approximately 6.5 to 10 years remaining to maturity. Each tick movement equals 1/64th of a point, valued at $15.625 per contract. This means a 4-tick move generates $62.50 in profit or loss, while a 16-tick move equals $250 per contract.

ZN typically experiences daily ranges between 20-40 ticks during normal market conditions, though this can expand significantly during Federal Reserve announcements, economic data releases, or periods of market stress. The contract often sees ranges of 60+ ticks on FOMC days or major economic events. This predictable volatility makes position sizing calculations straightforward for prop traders.

The instrument trades nearly 24 hours, but sees peak activity during U.S. market hours (8:20 AM - 3:00 PM CT) and the London session overlap. The most liquid periods occur during the first hour after the open and around major economic announcements at 7:30 AM CT. European bond market activity also influences ZN, creating additional opportunities during overseas sessions.

For prop firm accounts, position sizing should account for ZN's moderate volatility and the $15.625 tick value. A typical $25,000 account might use 1-3 contracts for swing trades, while scalpers could use 5-10 contracts given the tight risk management. The key is ensuring that a 20-tick adverse move doesn't exceed 1-2% of account equity.

ZN attracts diverse trading styles. Scalpers benefit from excellent liquidity and tight bid-ask spreads, often targeting 2-6 tick profits. Swing traders capitalize on technical patterns and interest rate cycles, holding positions for days or weeks. The contract also appeals to macro traders who trade around economic data and Federal Reserve policy shifts. Both systematic and discretionary traders find success with ZN due to its consistent behavior and strong correlation with economic fundamentals.