Ticks, points and contract value

Futures prices move in fixed steps called ticks. Knowing the tick size and tick value of a contract is the only way to know what a price move means in money.

Common US index contracts

• E-mini S&P 500 (ES): tick size 0.25 index points, tick value $12.50. One full point is four ticks, or $50.
• E-mini Nasdaq-100 (NQ): tick size 0.25 points, tick value $5.00. One point is $20.
• Micro E-mini S&P 500 (MES): one tenth of ES, so $1.25 per tick.
• Micro E-mini Nasdaq-100 (MNQ): one tenth of NQ, so $0.50 per tick.

Micro contracts exist so that smaller accounts can trade the same markets with a tenth of the exposure. They move identically in price; only the money per tick changes.

Working out a move

If NQ moves 40 points, that is 160 ticks. At $5 per tick, it is $800 per E-mini contract, or $80 per micro contract. The same arithmetic works for any contract once the tick size and tick value are known.

Always check the exchange's current specification. Exchanges occasionally change contract terms, and this lesson is a guide, not a reference.

Educational content only. Not financial advice.