Ticks and Tick Value — How to Calculate What One Tick Is Worth
Understand ticks (the minimum price increment) and tick value, see per-contract examples for the Nasdaq, gold, and crude oil, and learn to turn ticks into dollars of profit, loss, and stop distance.
In short — A tick is the smallest amount a contract's price can move; tick value is the dollar profit or loss when price moves one tick. The same "one point" is worth a different amount on different contracts, so you need to know the tick value before you enter a trade to gauge your risk.
What is a tick
A tick is the minimum increment a futures price is allowed to move. The E-mini Nasdaq, for example, moves in 0.25-point steps — that 0.25 is one tick. Because price can only change in whole-tick increments, there is no quote at an in-between value like 0.10; the order book simply skips it.
Tick value — what one tick is worth
Tick value is the profit or loss, per single contract, when price moves one tick — usually expressed in U.S. dollars. It varies by product and by contract size (standard, mini, or micro). Here are some common examples:
| Contract | One tick | Tick value (per contract) |
|---|---|---|
| Nasdaq (NQ) | 0.25 | ~$5 |
| Micro Nasdaq (MNQ) | 0.25 | ~$0.50 |
| S&P 500 (ES) | 0.25 | ~$12.50 |
| Gold (GC) | 0.10 | ~$10 |
| Micro Gold (MGC) | 0.10 | ~$1 |
| Crude oil (CL) | 0.01 | ~$10 |
The figures above are examples based on standard contracts. Products listed on other exchanges (such as the Hang Seng) are quoted in different currencies (e.g. HKD), and the actual tick size and tick value can vary by exchange and broker. Always confirm the spec for the contract you are trading.
Calculating profit and loss from ticks
Profit and loss is calculated as follows:
P&L = (price change ÷ one tick) × tick value × number of contracts
For example, on the Nasdaq (one tick = 0.25, tick value = $5), if price rises 10 points, the P&L on one contract is (10 ÷ 0.25) × $5 = 40 ticks × $5 = $200.
Why it matters — the starting point for position sizing
Once you know the tick value, you can translate a stop-loss into a dollar amount. If you set your stop at 20 ticks, the loss on one Nasdaq contract is 20 × $5 = $100. From there you size your position so that this dollar loss stays within the amount you are willing to lose on a single trade. That is the basic starting point of risk management.
For a fuller treatment, see → Leverage and risk management.
Confirm what one increment is worth here
Verifying against the actual product rather than trusting a table is the closing advice here, and a demo is a safe place to build that reflex. Merini’s free web demo carries Nasdaq and S&P instruments alongside gold and crude, so you can open one position at the smallest size, watch the P&L step as price moves, and work out for yourself what a single increment is worth on that particular instrument. Then translate a stop distance into money the way this article describes — that figure, not the chart, is what decides your position size → Check an instrument’s increment
Frequently asked questions
Where do I find the tick value?
It is listed in your broker’s product specification (contract specs), alongside the tick size. These can differ from the headline exchange spec, so always verify the values against your actual live trading account.
Why are mini and micro contracts’ tick values smaller?
Because their contract size is smaller than the standard contract. For a full breakdown of the differences, see → Mini and micro futures.
Related reading → What are futures? A complete guide · Understanding margin
This content is for information and education only and is not investment advice or solicitation. Trading conditions (hours, margin, fees, tick value, etc.) vary by exchange, broker, time, and daylight saving — always verify with your own broker before trading. Derivatives trading can result in losses exceeding your deposit.