GLOSSARY · CONTRACTS & MONEY
What is Tick Value?
Tick value is the dollar profit or loss for a one-tick move on one contract.
Tick value converts price movement into dollars. Multiply the number of ticks gained or lost by the tick value and the number of contracts, and you have your P&L.
Knowing tick value is the first step of position sizing: your stop distance in ticks × tick value = the dollars you risk per contract.
EXAMPLE
ES: $12.50 per tick. NQ: $5.00. YM (Dow): $5.00 per 1-point tick. RTY (Russell 2000): $5.00 per 0.10 tick. CL (crude oil): $10.00 per $0.01 tick. Micros are one-tenth: MES $1.25, MNQ $0.50.
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