Contract mechanics
What a tick is actually worth
Tick size, tick value and point value are three different numbers, and most of the confusion in futures position sizing comes from using one where another belongs. Here is each of them, the division that connects them, and the figures for twelve contracts.
Three numbers, not one
- Tick size is the smallest amount the price is allowed to move. On ES that is 0.25 of an index point. Price can go from 5000.00 to 5000.25, and never to 5000.10.
- Tick value is what one tick is worth in dollars, for one contract. On ES that is $12.50.
- Point value is what a full 1.00 move in price is worth. On ES that is $50.
You only ever need to remember two of them, because the third falls out of a division:
point value = tick value ÷ tick size
ES: $12.50 ÷ 0.25 = $50 a point. Crude: $10.00 ÷ 0.01 = $1,000 a point. That is also why our calculator stores tick size and tick value only, and derives the rest. A number you store twice is a number that can disagree with itself.
The figures, per contract
CME equity index, energy and metals, which is most of what this audience trades.
| Symbol | Contract | Tick size | Tick value | Point value |
|---|---|---|---|---|
ES | E-mini S&P 500 | 0.25 | $12.50 | $50 |
MES | Micro E-mini S&P 500 | 0.25 | $1.25 | $5 |
NQ | E-mini Nasdaq-100 | 0.25 | $5.00 | $20 |
MNQ | Micro E-mini Nasdaq-100 | 0.25 | $0.50 | $2 |
YM | E-mini Dow | 1.00 | $5.00 | $5 |
MYM | Micro E-mini Dow | 1.00 | $0.50 | $0.50 |
RTY | E-mini Russell 2000 | 0.10 | $5.00 | $50 |
M2K | Micro E-mini Russell 2000 | 0.10 | $0.50 | $5 |
CL | Crude Oil | 0.01 | $10.00 | $1,000 |
MCL | Micro Crude Oil | 0.01 | $1.00 | $100 |
GC | Gold | 0.10 | $10.00 | $100 |
MGC | Micro Gold | 0.10 | $1.00 | $10 |
Every micro is exactly one tenth
Across all six pairs above, the micro has the same tick size as its full-size sibling and exactly one tenth the tick value. MES ticks in the same 0.25 increments as ES and is worth $1.25 instead of $12.50.
That is more useful than it sounds. It means micros are not a different instrument to learn, they are a volume dial. A setup you would take with 1 ES can be taken with anywhere from 1 to 9 MES, which is the only way a small account gets to size in something finer than all-or-nothing.
Points and ticks are the most expensive words to mix up. On NQ, a 20 tick stop is 5 points and $100. A 20 point stop is 80 ticks and $400. Same sentence, four times the risk. When somebody quotes a stop without saying which unit, it is worth asking.
Why the same tick size is worth different money
ES and NQ both move in 0.25 increments. A tick on ES is $12.50 and a tick on NQ is $5.00. So "I use a 10 tick stop" is not one risk setting, it is $125 on ES and $50 on NQ, per contract.
The same trap sits in the metals row: RTY and GC both tick in 0.10, and one is $5.00 a tick while the other is $10.00.
This matters most when you move between instruments and keep your habits. A stop distance that felt right for months on one contract is a different amount of money on the next one, and the account notices before you do.
Where this actually gets used
Two places, both arithmetic:
- Sizing. Contracts = risk budget ÷ (stop in ticks × tick value). Every term on the right is from this page.
- Reading your results. Converting a points-based journal into money, or checking that a platform's reported profit matches the move you thought you caught.