Tick
The minimum price increment a futures contract can move, set by the exchange in its contract specification.
A tick is the smallest allowable price move for a futures contract. Every exchange publishes the tick size in its contract spec; trading in fractions smaller than the tick is not permitted.
Tick sizes vary widely: ES trades in 0.25-point ticks; NQ also in 0.25-point ticks; CL crude oil in $0.01 per barrel ticks; GC gold in $0.10 per troy oz ticks.
Day traders count P&L in ticks before converting to dollars — it keeps the math clean and separates entry quality from contract-size decisions.
Related Terms
Contract Size
The fixed quantity of the underlying asset controlled by one futures contract, set by the exchange.
BeginnerFutures Contract
A standardized, exchange-traded agreement to buy or sell an asset at a fixed price on a set future date, settled daily via mark-to-market.
BeginnerTick Size
The numeric value of the minimum price increment for a given futures contract (e.g. 0.25 index points for ES).
BeginnerTick Value
The dollar P&L impact of one minimum price move in a futures contract. Tick Size × Contract Multiplier.
Beginner