Tick Size
The smallest price movement allowed on a futures contract — a fixed increment defined by the exchange that determines how prices step up and down.
What is Tick Size?
Tick size is the smallest legal price increment a futures contract can move. It’s a fixed value defined by the exchange — you can’t trade between ticks. The bid-ask spread, the price ladder, the depth-of-market display, all step in tick-size increments.
For traders, tick size matters because:
- It defines the minimum P&L increment — your account moves up or down in multiples of (tick size × tick value)
- It defines the minimum stop distance — stops must be placed at tick boundaries
- It defines the spread — markets quote at multiples of tick size
- It defines the volatility unit — “ES moved 8 ticks” means a specific dollar amount
Tick size is fundamentally different from tick VALUE (the dollar value per tick). A contract has ONE tick size and ONE tick value, both defined by the exchange and the contract specification. Confusing the two is one of the most common position-sizing errors among new futures traders.
How Tick Size works
Common futures tick sizes:
- ES (S&P 500 E-mini): 0.25 points
- NQ (Nasdaq E-mini): 0.25 points
- YM (Dow E-mini): 1.00 points
- RTY (Russell 2000 E-mini): 0.10 points
- MES (Micro S&P): 0.25 points (same as ES)
- MNQ (Micro Nasdaq): 0.25 points (same as NQ)
- CL (WTI Crude Oil): $0.01
- MCL (Micro Crude): $0.01
- GC (Gold): 0.10 points
- MGC (Micro Gold): 0.10 points
- ZB (30-Year Treasury): 1/32 of a point (0.03125)
- ZN (10-Year Treasury): 1/64 of a point (0.015625)
- NG (Natural Gas): 0.001 points
- 6E (Euro FX): 0.00005
How tick size relates to tick value:
- ES: 0.25 tick size × $50 per point = $12.50 per tick
- NQ: 0.25 tick size × $20 per point = $5.00 per tick
- MES: 0.25 tick size × $5 per point = $1.25 per tick
- CL: $0.01 tick size × 1000 barrels = $10.00 per tick
Stop loss in ticks vs. dollars: A 4-tick stop on ES = 4 × $12.50 = $50 per contract. Same 4-tick stop on NQ = 4 × $5 = $20 per contract. Same 4-tick stop on CL = 4 × $10 = $40 per contract. The number of ticks doesn’t tell you the dollar risk — you need tick value too.
Worked example
Position sizing using tick size and tick value:
Trader on Apex $50K eval (max drawdown $2,500). Wants to risk 1% per trade = $500.
ES setup, 4-point stop (16 ticks at 0.25/tick):
- 16 ticks × $12.50 = $200 per contract risk
- Position size: $500 risk / $200 per contract = 2.5 contracts
- Round down: 2 ES contracts (or 10 MES for finer position sizing)
CL setup, $0.20 stop (20 ticks at $0.01/tick):
- 20 ticks × $10 = $200 per contract risk
- Position size: $500 / $200 = 2.5 contracts
- Round down: 2 CL contracts
Tick size on ZB (1/32 ticks):
- ZB tick size: 1/32 = 0.03125
- ZB tick value: $31.25
- If trader wants 8-tick stop: 8 × $31.25 = $250 per contract
- For $500 risk: 2 contracts
Same dollar risk across all three instruments — different position sizes because tick size and tick value differ. Knowing both is essential.
Tick Size vs related concepts
Side-by-side comparison of Tick Size against the most commonly confused alternatives.
| Concept | Definition | Category |
|---|---|---|
| Tick Size this term | The smallest price movement allowed on a futures contract — a fixed increment defined by the exchange that determines how prices step up and down. | Futures Mechanics |
| Tick Value | The dollar value per minimum price movement on a futures contract — multiplying tick value by ticks moved gives your dollar P&L change per contract. | Futures Mechanics |
| Micro Futures | Smaller-sized versions of major futures contracts (typically 1/10th the size of mini futures), designed for retail and prop firm traders to manage risk with less capital. | Futures Mechanics |
| Mini Futures | Mid-sized futures contracts (typically 10x the size of micro futures, 1/5th to 1/10th the size of pit-traded contracts) — the most-traded futures contracts on US exchanges. | Futures Mechanics |
How major prop firms handle Tick Size
Every firm implements tick size differently. Here's the firm-by-firm breakdown — DGT-trusted firms surface first, with implementation notes for each.
| Firm | How they handle it | Rating |
|---|---|---|
| Apex Trader Funding DGT TRUSTED | Standard CME tick sizes apply on all Apex futures accounts. Apex supports ES, NQ, RTY, YM, MES, MNQ, MYM, M2K (indices), CL, MCL, NG (energy), GC, MGC, SI, SIL (metals), ZB, ZN, ZF (treasuries), ZC, ZS, ZW (grains). | |
| Take Profit Trader DGT TRUSTED | Standard CME tick sizes apply. TPT supports the major equity index futures, energy, metals, treasuries, and currencies through Rithmic and Tradovate execution. | |
| Tradeify DGT TRUSTED | Standard exchange tick sizes apply across Tradeify-supported instruments. Specific instrument list available in Tradeify's help center — generally covers major US futures markets. | |
| Lucid Trading DGT TRUSTED | Standard CME and CBOT tick sizes apply on Lucid funded accounts. Algorithmic strategies relying on tick-level price action are well-supported on Lucid platforms. | |
| FundedNext DGT TRUSTED | Standard CME tick sizes apply on FundedNext's futures vertical. Verify supported instrument list on fundednext.com. |
Why traders fail Tick Size
Confusing tick size with tick value. ES tick SIZE is 0.25 points; ES tick VALUE is $12.50. They’re different quantities. Tick size tells you how prices step. Tick value tells you the dollar impact per tick.
Forgetting that different contracts have different tick sizes. ES = 0.25, YM = 1.00, ZB = 1/32. A trader who uses the same number of “tick” stops across instruments is using radically different dollar risks per contract.
Reading prices without tick-size context. An ES move from 4500.00 to 4501.00 is 4 ticks (0.25 each). Reading it as “a one-point move = some dollar amount” is fine, but always relate it to ticks for stop placement.
Placing stops between ticks. You can’t place a stop at 4500.20 on ES — only at 4500.00, 4500.25, 4500.50, etc. Most platforms round to the nearest valid tick automatically, but understanding the constraint prevents confusion.
Frequently asked questions about Tick Size
What's the difference between tick size and tick value?
Tick SIZE = the smallest legal price increment (e.g., ES = 0.25 points). Tick VALUE = the dollar amount per tick movement (e.g., ES = $12.50). Different quantities. Tick value depends on contract specifications including the multiplier per point.
Why do different futures have different tick sizes?
Each exchange sets tick sizes to balance price-discovery granularity against trader confusion. Liquid contracts (ES, NQ) use 0.25 to keep ticks meaningful but trade-able. Treasury futures use fractional increments (1/32, 1/64) to match historical bond pricing conventions.
Can I place a stop between ticks?
No. All orders must be at valid tick increments. ES stops can only be at 0.25-point intervals. Most platforms automatically round to the nearest valid tick — but understanding the constraint prevents surprises when you set a stop and the platform shifts it.
How do I find the tick size for a specific contract?
Check the contract specifications on the exchange website (CME for most futures). Most trading platforms display tick size in the contract details. Knowing tick size and tick value for the contracts you trade is essential — write them down for quick reference.
Is tick size the same as point size?
Sometimes. ES tick size = 0.25 points (one tick = quarter of a point). For YM, tick size = 1.00 point (one tick = one full point). For CL, tick size = $0.01 (where the "point" unit is the dollar). The terms relate but aren't universally equivalent.