What does Tick Value mean?
Tick value converts the contract's minimum price movement into money. It depends on both the contract specification and its multiplier, so contracts with the same-looking price move can have very different monetary effects.
Why it matters
- Tick value is fundamental to understanding position exposure.
- It converts a stop distance from chart units into monetary risk.
- It helps compare standard and micro futures contracts.
How it works
- 01
The exchange defines the minimum price increment.
- 02
That increment is multiplied by the contract's dollar multiplier.
- 03
For NQ, a 0.25-point tick is $5; for MNQ, a 0.25-point tick is $0.50.
Example
A 20-tick move equals 5 index points in NQ or MNQ. That represents $100 per NQ contract or $10 per MNQ contract before costs.
Common misunderstandings
- Tick value is not the same as margin requirement.
- Different contracts have different tick values.
- Adding more micro contracts increases total tick exposure.
Educational reference
This glossary explains terminology and
general market concepts. It is not a
trading signal or a guarantee of future
results.