Page 18 - Futures Money Machine-Study Session #3

Understanding Futures

Understanding “Tick” size in Futures …

Knowing the contract size or points and minimum “tick” value can help you identify what the

monetary “tick” value is for the product you are trading.

To find the monetary tick value for any Futures contract you can use the following formulas:

Stock Indexes and Interest Rates Formula:

• Points X Minimum “Tick” = Monetary Tick Value

All Other Markets Formula:

• Contract Size X Minimum “Tick” = Monetary Tick Value

It is of the utmost importance that a trader knows and understands the product that he/she is
trading.