# Tick Size and Tick Value

> Tick size is a future's smallest price move; tick value is what it is worth per contract. Learn to calculate P&L, risk per trade and position size from ticks.

Source: https://learn.tradelabsai.com/futures/tick-size-and-tick-value/  
Track: Futures · Level: Intermediate · Updated: 2026-10-03  
Publisher: TradeLabs AI (https://tradelabsai.com). Education, not financial advice.  
Cite as: TradeLabs Learn, "Tick Size and Tick Value", https://learn.tradelabsai.com/futures/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](https://learn.tradelabsai.com/markets/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

| Contract | Tick size | Tick value | Point value |
|---|---|---|---|
| E-mini S&P 500 (ES) | 0.25 index points | $12.50 | $50 per point |
| Micro E-mini S&P 500 (MES) | 0.25 | $1.25 | $5 per point |
| E-mini Nasdaq 100 (NQ) | 0.25 | $5.00 | $20 per point |
| E-mini Dow (YM) | 1 point | $5.00 | $5 per point |
| WTI crude oil (CL) | $0.01 | $10.00 | $1,000 per $1 |
| Gold (GC) | $0.10 | $10.00 | $100 per $1 |
| 10 year Treasury note (ZN) | 1/64 point | $15.625 | $1,000 per point |
| Euro FX (6E) | 0.00005 | $6.25 | $125,000 per 1.0000 |
| Corn (ZC) | 0.25 cent | $12.50 | $50 per cent |

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

## Worked examples

**Example: Profit on E-mini S&P 500**
You buy 2 ES contracts at 5,012.50 and sell at 5,021.75. The move is 9.25 points, which is 37 ticks (9.25 / 0.25). Profit = 37 × $12.50 × 2 = $925, before commissions.

**Example: Loss on crude oil**
You short 1 CL contract at $81.20 and the price rises to $81.65 where your stop fills. The move is $0.45, or 45 ticks. Loss = 45 × $10 = $450.

**Example: Treasury note ticks**
ZN is quoted in points and fractions of 32nds. A move from 110'16 (110 and 16/32) to 110'24 (110 and 24/32) is 8/32 of a point, which is 16 ticks of 1/64. Profit on one long contract = 16 × $15.625 = $250.

Try your own numbers in the [Futures Tick Value Calculator](https://learn.tradelabsai.com/tools/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)
```

**Example: Sizing a crude oil trade**
Your account is $50,000 and you risk 1% ($500) per trade. Your crude oil stop is 30 ticks away, worth 30 × $10 = $300 per contract. Contracts = 500 / 300 = 1.67, so you trade 1 contract (rounding down). With micro crude (100 barrels, $1 per tick), the same stop costs $30 per contract, so you could trade 16 micros for $480 of risk, matching your target more closely. See [Position Sizing](https://learn.tradelabsai.com/risk/position-sizing/).

## 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](https://learn.tradelabsai.com/orders/spread-costs/) and [Scalping](https://learn.tradelabsai.com/strategies/scalping/).

| Contract | One tick cost | As a share of a 4 tick target |
|---|---|---|
| ES | $12.50 | 25% |
| MES | $1.25 | 25% |
| CL | $10 | 25% |

## 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](https://learn.tradelabsai.com/market-structure/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](https://learn.tradelabsai.com/futures/contract-months-and-expiration/).

## Continue learning

- Next lesson: [Contract Months and Expiration](https://learn.tradelabsai.com/futures/contract-months-and-expiration/)
- Previous lesson: [Contract Specifications](https://learn.tradelabsai.com/futures/contract-specifications/)
- Related: [Contract Specifications](https://learn.tradelabsai.com/futures/contract-specifications/): Contract specifications define a futures contract's size, tick, months, hours and settlement. Learn every field, with examples for E-mini S&P, crude oil and gold.
- Related: [Futures Tick Value Calculator](https://learn.tradelabsai.com/tools/futures-tick-value-calculator/): Free futures tick value calculator. Pick a contract such as ES, MES, NQ, CL or GC, enter entry, exit and contracts, and see ticks and profit or loss.
- Related: [Position Sizing](https://learn.tradelabsai.com/risk/position-sizing/): Position sizing decides how many shares or contracts to trade so each loss stays small. Learn the formula, worked examples for each market and common mistakes.
- Related: [Ticks and Tick Size](https://learn.tradelabsai.com/markets/ticks-and-tick-size/): A tick is the smallest price move an asset can make. Learn tick sizes in stocks, futures, forex and crypto, how tick value works and why it matters for costs.
- Related: [Stop Loss Strategies](https://learn.tradelabsai.com/risk/stop-loss-strategies/): A good stop sits where your trade idea is proven wrong. Compare structure, volatility, percentage and time stops, with examples and the mistakes to avoid.