The dollar amount gained or lost per contract for one minimum price movement in a futures product.
Tick value = tick size x contract multiplier. Every futures product has its own, and knowing it is required to convert a stop distance into dollars for position-sizing.
Common values: es $12.50 per 0.25 point; nq $5 per 0.25 point; cl $10 per $0.01; gc $10 per $0.10; micro-futures are one-tenth of these.
Example: a 12-point stop on ES is 48 ticks x $12.50 = $600 per contract. On MES (micro) the same stop is $60.
Original diagrams for the ideas on this page. Illustrative, not real market data.
Working out a position size. Three numbers decide how big a trade is: the account, the share of it put at risk, and the distance from entry to stop. One percent of $25,000 is a $250 budget, and a $0.50 stop divides into that 500 times.
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