Contract size:
Tick size:
Value per tick:
Value per full point:
Contract specifications are set by the exchanges and can change; verify before trading.
How tick values work
Every futures contract has a minimum price increment set by its exchange. That increment is the tick. The tick value is simply the tick size multiplied by the contract size, expressed in dollars. Corn futures cover 5,000 bushels and trade in quarter-cent-per-bushel ticks, so one tick is 0.0025 dollars times 5,000, or $12.50. Crude oil covers 1,000 barrels and trades in one-cent ticks, so one tick is $10.
Ticks exist so that prices move in orderly, standardized steps. You will never see corn quoted at 450.13 cents, because the exchange only allows quarter-cent increments. Knowing the tick before you trade tells you the smallest unit of profit or loss you can experience on one contract.
Ticks, points, and handles
Traders also talk about points. A point is a one-dollar move in the quoted unit, and it contains a fixed number of ticks. In corn, one full cent per bushel is worth $50 on a 5,000-bushel contract, and it takes four quarter-cent ticks to make that cent. In Treasury notes, points are split into 32nds and 64ths, which confuses newcomers, so always check the quote format before you do the math.
The calculator above shows both figures: the value of a single tick and the value of a full point. If you know a market moved ten ticks against you, multiply by the tick value and the number of contracts and you know your loss to the penny, before commissions and fees.
Why tick value matters before you trade
Tick value is the building block of risk management. Your stop distance in ticks times the tick value times the number of contracts is the dollar amount you stand to lose if the stop is hit. A 20-tick stop in corn is $250 per contract; the same 20 ticks in natural gas is $200 per contract, but natural gas moves 20 ticks in minutes on a quiet day. Futures trading involves substantial risk of loss and is not suitable for all investors. If you are working out whether a market fits your account, our brokers do this arithmetic with clients every day, and the two-week free trial includes simulated trading where you can practice without real money at stake.