Tick Size and Tick Value

Every futures contract moves in fixed minimum increments called ticks. The tick size is the smallest allowed price change, and the tick value is how much money one tick is worth on one contract. Together they turn price moves into dollars. Knowing a contract's tick value lets you calculate profit and loss instantly, translate a stop loss into dollar risk and decide how many contracts to trade. The general idea of ticks across markets is in Ticks and Tick Size.

The formulas#

tick value = tick size × contract size
profit or loss = number of ticks moved × tick value × number of contracts

Common contracts#

Values as listed in exchange specifications; check current specifications before trading.

Worked examples#

Try your own numbers in the Futures Tick Value Calculator.

Using ticks for risk and sizing#

Translate your stop distance into dollars, then size the position so that the dollar risk matches your rule.

contracts = account risk in dollars / (stop distance in ticks × tick value)

Ticks and costs#

The bid ask spread in liquid futures is often one tick. Entering at the ask and exiting at the bid costs one tick per contract, plus commissions and fees. For short term traders, that tick is a large share of the target. See Spread Costs and Scalping.

Tick size changes#

Exchanges sometimes change tick sizes. Smaller ticks can tighten spreads and lower costs for active traders, but they can also reduce displayed depth at each price. Options on futures and spread contracts often have different tick sizes from the outright futures.

Common mistakes#

• Confusing points and ticks: in ES, one point is four ticks.
• Sizing by number of contracts rather than by dollar risk.
• Forgetting fractional quoting in Treasury futures.
• Ignoring the cost of the spread in tick terms.

Minimum price steps and minimum quantities vary by venue and asset; Tick Sizes and Lot Sizes compares them across stocks, futures, forex and crypto.

Frequently asked questions#

What is a tick in futures?#

The smallest price movement allowed for a futures contract, set by the exchange.

How do you calculate futures profit?#

Multiply the number of ticks the price moved by the tick value and by the number of contracts.

What is the tick value of the E-mini S&P 500?#

One tick is 0.25 index points, worth $12.50 per contract; one full point is worth $50.

Next, learn how contract months and expiry work in Contract Months and Expiration.