Top 3 Indicators for Trading Futures | EminiMind

Each financial market has a minimum price fluctuation, called a tick. A tick is the smallest price movement an asset can make--called the tick size--and each tick of movement is worth a specific amount of money depending on the asset being traded.

Tick Size and Value Trading Definitions

This is called the tick value. The tick size is the minimum amount that the price of a futures contract can change. Crude Oil CL moves in 0.

Gold futures GC have a tick size 0. To see the tick value of the specific futures contract you want to trade, find the contract on the CME Group website , click on the appropriate contract, and then click on the Contract Specs tab. The Minimum Price Fluctuation is the tick size.

A market's tick value is the cash value of one tick one minimum price movement.

These tick values are based on one contract. If you have a position of two, three, or more contracts, multiply the tick value by how many contracts you have. This will tell you how much you stand to make or lose on each tick of movement.

Not knowing the tick size and tick value of the futures contract you are trading can result in taking position sizes that are way too big or small relative to your expectations.

Each contract or stock moves a different amount each day, relative to other futures contracts or stocks. Therefore, you would want to compensate for this when deciding how many contracts to trade.

Search the site GO. Day Trading Glossary Basics Trading Systems Trading Psychology Trading Strategies Stock Markets Risk Management Forex Technical Indicators Options. Updated August 09, Tick Size The tick size is the minimum amount that the price of a futures contract can change.

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