Points, Ticks and Dollar Value
Before you trade one contract, know what one move costs. Every futures contract has a fixed price step and a fixed dollar value. Learn these once and every chart starts to read in dollars.
What is a tick?
A tick is the smallest step a price can move. On the Nasdaq 100 and S&P 500 futures, one tick is a quarter of a point (0.25). Four ticks make one point.
What is one point worth?
Each contract has a multiplier: the dollars you make or lose for each point the price moves. Here are the common ones.
| Contract | 1 tick | 1 point or $1 move |
|---|---|---|
| MNQ Micro Nasdaq 100 | $0.50 | $2 |
| NQ E-mini Nasdaq 100 | $5 | $20 |
| MES Micro S&P 500 | $1.25 | $5 |
| ES E-mini S&P 500 | $12.50 | $50 |
| MGC Micro Gold | $1 (0.10) | $10 per $1 |
| MCL Micro Crude Oil | $1 (0.01) | $100 per $1 |
Check the official numbers on CME before you trade: MNQ specs, MES specs, Micro Gold specs and Micro Crude Oil specs.
Do the math before you click
Say you buy 1 MNQ and the price moves 15 points against you. That is 15 x $2 = a $30 loss. The same move on 1 NQ is 15 x $20 = a $300 loss. Same chart. Ten times the money.
Three habits to start with
- Write the dollar value of one point on a note by your screen.
- Think in dollars, not points. "Down 15 points" hides what it costs you.
- Start with micro contracts while you learn. The lesson is the same at one-tenth the price.
All Futures 101 lessons
- Lesson 1: Points, ticks and dollar value (you are here)
- Lesson 2: Margin, leverage and daily settlement
- Lesson 3: Order types and bracket orders
- Lesson 4: Sessions, holidays and the roll
- Lesson 5: Risk per trade with micros
- Lesson 6: Your first plan: chart, simulator, journal
Mahalo for reading and trade well!
Glenn & Reid | Hawaiʻi Trading Academy
Risk disclaimer: Trading futures involves substantial risk of loss and is not suitable for every investor. You can lose more than your initial deposit. Examples on this page use made-up numbers to teach the math. Past performance does not guarantee future results. Hawaiʻi Trading Academy provides education only. We are not financial advisors, and nothing on this page is a recommendation to buy or sell any financial product. CME Group is an independent exchange; HTA is not affiliated with it. Contract details can change; check CME before you trade.
