Page 14 - Futures Money Machine-Study Session #3
P. 14
Understanding Futures
Understanding “Tick” size in Futures …
Examples:
• If you trade Stocks, the “Tick Size” is: 0.01 = $0.01; 1-point = $1
• If you trade the S&P Emini, the “Ticks Size” is: 0.25 = $12.50; 1-point = $50
• If you trade the Nasdaq 100 Emini, the “Tick Size” is: 0.25 = $5; 1-point = $20
With this course you get a handy reference sheet of the “Tick Sizes” for the major futures markets. Also your
broker has this available for you as well. Even though it rarely happens, “tick” sizes like symbols can change from
time to time so be sure you always ask your broker for the verification or the exchange it is traded on.
The best way to find a minimum “tick” value for a Futures contract is to go to the contract specifications page of
the Exchange website where the product trades at. For example, the 30 Year Bond (US) trades on the CMEGroup
Exchange. Go to www.cmegroup.com and locate the product on the home page then find the contracts
specification tab. Once there the minimum tick is identified for you. If a trader wants contract specifications for
Sugar they should visit www.theice.com. All traders should be familiar with the Exchange websites that the
products they choose to trade are actually traded on.
