Tick Value
The dollar P&L impact of one minimum price move in a futures contract. Tick Size × Contract Multiplier.
Formula
Tick Value = Tick Size × Contract Multiplier
Tick value is the dollar amount you make or lose when a futures contract moves by exactly one tick. It is the most fundamental number a futures trader must know — every stop-loss and target calculation starts here.
Tick value = tick size × contract multiplier. For ES: 0.25 × $50 = $12.50/tick. For MES (micro): 0.25 × $5 = $1.25/tick. For NQ: 0.25 × $20 = $5/tick. For CL: $0.01 × 1,000 = $10/tick. For GC: $0.10 × 100 = $10/tick.
Position sizing in futures is always expressed in contracts, not dollars — knowing tick value lets you convert a dollar risk to a contract count instantly.
Example
A trader risks a 20-tick stop on ES. 20 × $12.50 = $250 risk per contract. To risk $500 total, trade 2 contracts. Same stop on MES: 20 × $1.25 = $25 risk — ideal for small accounts or precision sizing.
Related Terms
CL (Crude Oil Futures)
NYMEX futures on West Texas Intermediate crude oil. 1,000 barrels per contract, $0.01/barrel tick, physically delivered at Cushing, Oklahoma.
IntermediateContract Multiplier
The dollar amount assigned to each index point (or unit) of a futures contract, converting price moves into P&L.
BeginnerContract Size
The fixed quantity of the underlying asset controlled by one futures contract, set by the exchange.
BeginnerES (E-mini S&P 500)
The world's most liquid equity index futures contract — tracks the S&P 500, $50 per point, expires quarterly.
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.
BeginnerGC (Gold Futures)
COMEX gold futures. 100 troy ounces per contract, $0.10/oz tick ($10/tick). Physically deliverable at approved COMEX vaults.
IntermediateMargin-to-Tick Ratio
Initial margin divided by tick value — the number of adverse ticks required to wipe out all posted margin on one contract.
AdvancedMicro Futures
CME contracts at one-tenth the size of E-mini equivalents — designed for fine-grained position sizing and smaller accounts.
BeginnerPoint Value
The dollar P&L impact of a full one-point move in a futures contract. Equal to the contract multiplier.
BeginnerTick
The minimum price increment a futures contract can move, set by the exchange in its contract specification.
BeginnerTick Size
The numeric value of the minimum price increment for a given futures contract (e.g. 0.25 index points for ES).
BeginnerYM (E-mini Dow)
CBOT E-mini futures on the Dow Jones Industrial Average. $5 per point, 1-point tick. The smallest-notional major US index future.
Beginner