Page 13 - Futures Money Machine-Study Session #3
P. 13
Understanding Futures
Understanding “Tick” size” in Futures …
• Each Futures market has it’s own “tick” size.
• “Tick” size is usually what scares stock traders away for trading
futures.
• In Futures, the “tick” is the minimum price movement of a trading
instrument. The price movements of different trading instruments
vary with the “tick” size representing the minimum incremental price
movement that can be experienced on an exchange. The “tick” size
increment is expressed in terms of dollars within U.S. markets. “Tick”
sizes dictate the minimum standards at which the price of a particular
security can move.
