Tick Value and Point Value in Futures, Explained
What ticks and points are, what they are worth for ES, NQ, MES, MNQ, CL and GC, and the one formula for futures profit and loss.
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The short answer: A tick is the smallest price move a futures contract can make, and tick value is what that move is worth in dollars for one contract. Point value is what a full one-point move is worth. On the E-mini S&P 500 (ES), a tick is 0.25 points worth $12.50, and a point is worth $50. Your profit or loss is points moved × point value × number of contracts.
Key takeaways
- Tick size is the minimum price change. Tick value is its dollar worth per contract.
- Point value = tick value × ticks per point.
- P&L = points × point value × contracts.
- Micro contracts are one-tenth the size of their E-mini versions.
- Knowing these numbers is the first step in position sizing.
What is a tick in futures?
The smallest amount a contract's price can change. ES moves in steps of 0.25, so it can go from 5,000.00 to 5,000.25, but never to 5,000.10. Each contract has its own tick size, set by the exchange.
What is tick value?
The dollar amount one tick is worth, for one contract. On ES, one tick is $12.50. If you're long one ES contract and price rises four ticks, you've made $50.
What is point value?
What a full one-point move is worth for one contract. Multiply tick value by the number of ticks in a point. ES has four ticks per point (0.25 × 4 = 1), so its point value is 4 × $12.50 = $50.
What are the tick and point values of popular futures?
Here are the contracts most day traders and prop firm traders use. Exchanges can change specs, so confirm with your broker or platform.
| 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 | $5.00 | $5 |
| MYM (Micro E-mini Dow) | 1 | $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 |
Notice the pattern: each micro is one-tenth of its full-size contract. That's what makes micros useful for small accounts and tight prop firm drawdowns.
How do you calculate futures profit and loss?
Points moved × point value × contracts.
You can also do it in ticks: ticks moved × tick value × contracts. Both give the same answer. On crude oil, a move from 75.00 to 75.40 is 40 ticks, or 0.40 points. One CL contract makes 40 × $10 = $400, or 0.40 × $1,000 = $400.
Why should traders think in points?
Because points describe the chart, and dollars describe your size. A 20-point stop on MNQ is the same idea whether you trade one contract or ten. Thinking in points keeps your analysis separate from your position size, which is exactly what you want when deciding how much to risk.
From the desk Indy trades MNQ and records every result in points on Day Trader Income. Points make records comparable: a 30-point day is a 30-point day whether it was traded with 2 contracts or 20. Multiply by $2 per contract per point and you have the dollars.
Why do tick values matter in a prop firm account?
Because the drawdown is in dollars, and the chart is in points. A $2,000 drawdown is 40 points on one ES contract, 100 points on one NQ, or 1,000 points on one MNQ. The same move can be a rounding error on micros and a failed account on minis. Know the conversion before you choose a contract. More in risk management for funded traders.
The bottom line
Tick size is the step. Tick value is what the step pays. Point value is what a full point pays. Learn the numbers for the contracts you trade, think in points on the chart, and convert to dollars only when you size the trade.
FAQ
What is a tick in futures trading?
A tick is the smallest price change a futures contract can make. On ES it is 0.25 points; on crude oil it is 0.01.
What is the tick value of ES?
One ES tick is 0.25 points and is worth $12.50 per contract. One full point is worth $50.
What is the point value of MNQ?
MNQ, the Micro E-mini Nasdaq-100, is worth $2 per point. Its tick is 0.25 points, worth $0.50.
How do you calculate profit on a futures contract?
Multiply points moved by the point value and by the number of contracts. Three MNQ contracts up 15 points makes 15 × $2 × 3 = $90.
What is the difference between micro and mini futures?
Micro contracts are one-tenth the size of their E-mini versions. MES is one-tenth of ES, and MNQ is one-tenth of NQ.