A trader sees NQ down 35 points and thinks it is only 35 points. It is not. One NQ point is $20 per contract. Thirty-five points is $700 per contract before fees, slippage, or bad decision-making.
The chart shows points. The account feels dollars. Tick value is the translation layer between the two.
A tick is the minimum price movement for a futures contract. Tick value is the dollar value of that movement.
Risk = stop distance in ticks x tick value x contract count.
| Contract | Market | Tick size | Tick value | Point / $1 move |
|---|---|---|---|---|
| ES | E-mini S&P 500 | 0.25 | $12.50 | $50 / point |
| MES | Micro E-mini S&P 500 | 0.25 | $1.25 | $5 / point |
| NQ | E-mini Nasdaq-100 | 0.25 | $5.00 | $20 / point |
| MNQ | Micro E-mini Nasdaq-100 | 0.25 | $0.50 | $2 / point |
| CL | WTI Crude Oil | 0.01 | $10.00 | $1,000 / $1 move |
| GC | Gold | 0.10 | $10.00 | $100 / $1 move |
The Core Formula
If your MES stop is 24 ticks and you trade 3 contracts, the risk is 24 x $1.25 x 3 = $90 before fees and slippage.
Tick Size vs Tick Value
ES and MES both move in 0.25-point ticks, but ES is $12.50 per tick and MES is $1.25 per tick. Same chart shape. Different dollar engine.
A 6-point S&P futures stop is 24 ticks. On MES, that is $30 per contract. On ES, it is $300 per contract.
What contract am I trading? What is one tick worth? How many ticks to my stop? How many contracts? What is the dollar risk before fees and slippage?
Source and risk notes
- CME explains futures tick movements and gives the ES tick-value example: Tick Movements.
- NFA investor resources warn futures trading is risky: NFA Investor Best Practices.
Final rule: every futures trade starts as a math problem. If you know tick value, stop distance, and contract count, the trade can be managed.
