Futures
Futures Tick Value Explained: ES, NQ and the Micros
By MarketsBench · Published · Updated · 4 min read
Step 1 of 3 in Futures Essentials.
Futures do not move in dollars, they move in ticks — and every contract has its own tick size and its own dollar value per tick. Until you can convert a stop distance into ticks and ticks into dollars, you cannot size a futures trade at all.
Tick size, point value, tick value
Three numbers define every contract, and they are routinely confused:
- Tick size — the smallest price increment the contract trades in. On ES it is 0.25 index points.
- Point value (multiplier) — the dollar value of a one-point move. ES is $50 per point.
- Tick value — what one tick is worth:
tick size × point value. On ES, 0.25 × $50 = $12.50.
So ES moving from 5000.00 to 5000.25 is one tick and $12.50. Moving to 5001.00 is four ticks and $50.
The common contracts
| Contract | Market | Tick size | Point value | Tick value |
|---|---|---|---|---|
| ES | E-mini S&P 500 | 0.25 | $50 | $12.50 |
| MES | Micro S&P 500 | 0.25 | $5 | $1.25 |
| NQ | E-mini Nasdaq-100 | 0.25 | $20 | $5.00 |
| MNQ | Micro Nasdaq-100 | 0.25 | $2 | $0.50 |
| YM | E-mini Dow | 1.0 | $5 | $5.00 |
| RTY | E-mini Russell 2000 | 0.1 | $50 | $5.00 |
| CL | Crude Oil (WTI) | 0.01 | $1,000 | $10.00 |
| MCL | Micro WTI Crude | 0.01 | $100 | $1.00 |
| GC | Gold | 0.10 | $100 | $10.00 |
| MGC | Micro Gold | 0.10 | $10 | $1.00 |
Notice that the micro contracts share the tick size of their full-size sibling but carry one-tenth the point value — so MES ticks in the same 0.25 increments as ES, worth $1.25 instead of $12.50.
Turning a stop into dollars
Three steps, every time:
- Stop distance in points — from the chart.
- Ticks = distance ÷ tick size.
- Risk per contract = ticks × tick value.
A 12-point stop on the S&P:
12 ÷ 0.25 = 48 ticks
| Contract | Ticks | Tick value | Risk per contract |
|---|---|---|---|
| ES | 48 | $12.50 | $600 |
| MES | 48 | $1.25 | $60 |
The same chart, the same idea, the same stop — and a tenfold difference in what being wrong costs. On a $10,000 account risking 1% ($100), MES fits with room to spare and ES does not fit at all.
Contract value is a separate number
Tick value tells you what a move costs. Contract value tells you what you are controlling:
Contract value = price × point value
ES at 5000 is a $250,000 position. MES at the same price is $25,000. Neither figure is your risk — the stop defines that — but both matter, because the notional is what the exchange charges margin against and what a limit-down move applies to.
Where traders go wrong
Reading the tick value off the wrong contract. NQ is $5.00 a tick and MNQ is $0.50. A trader who sizes MNQ using NQ's tick value ends up with ten times the intended position. Confirm the symbol before every session.
Confusing ticks with points. "A 10-tick stop" on ES is 2.5 index points and $125. "A 10-point stop" is 40 ticks and $500. Platforms display both, and the words get used loosely.
Assuming 0.25 everywhere. Tick sizes vary widely: YM ticks in whole points, RTY in 0.1, CL in cents, and the treasury contracts in awkward thirty-seconds and sixty-fourths. ZB's 1/32 tick is $31.25; ZN's 1/64 is $15.625.
Forgetting the multiplier on a rollover. Contract specs are occasionally revised between listings. It is worth a check each quarter rather than an assumption.
The habit worth building
Before entry, write down three numbers: the stop in ticks, the risk per contract, and the number of contracts your risk budget allows. If the third number rounds to zero, the trade is too big for the account — which is information, not a reason to widen the stop.