Futures Education
What Is Tick Value in Futures Trading?
The fundamental building block of futures profitability.
Ticks vs. Points
In the stock market, you track prices in pennies. In the futures market, we use points and ticks. A tick is the smallest possible price move a contract can make.
1. Tick Size
This is the physical increment of the price. For example, crude oil (CL) has a tick size of 0.01. Gold (GC) has a tick size of 0.10. E-mini S&P 500 (ES) has a tick size of 0.25.
2. Tick Value
This is the dollar amount profit or loss fluctuates for every one tick move per contract. Understanding this is critical for risk management.
Comparison Table: Ticks & Values
| Contract | Tick Size | Tick Value | Full Point Value |
|---|---|---|---|
| ES (S&P 500) | 0.25 | $12.50 | $50.00 |
| MES (Micro S&P) | 0.25 | $1.25 | $5.00 |
| NQ (Nasdaq-100) | 0.25 | $5.00 | $20.00 |
| CL (Crude Oil) | 0.01 | $10.00 | $1,000.00 |
Why It Matters
If you don't know your tick value, you don't know your risk. A 10-tick stop on ES ($125) is much more expensive than a 10-tick stop on MES ($12.50), even though the "distance" on the chart looks exactly the same.
Disclaimer: This content is for educational purposes only and does not provide financial advice. Verify all contract specs with your exchange.