{"term":{"slug":"tick-value","term":"Tick Value","definition":"The monetary value of a one-tick movement in a futures contract. A tick is the minimum price increment for a futures instrument. ES (E-mini S&P 500) has a tick value of $12.50, NQ (E-mini Nasdaq) is $5.00.","extendedExplanation":"Tick value is the futures equivalent of pip value in forex. Each futures contract has a defined minimum price increment (tick) and a corresponding dollar value per tick. Common values: ES = $12.50/tick (4 ticks per point, $50/point), NQ = $5.00/tick (4 ticks per point, $20/point), MES = $1.25/tick.\n\nFor prop firm futures traders, tick value determines position sizing. If your daily loss limit is $1,000 and you trade ES with a 10-tick (2.5-point) stop, your risk per contract is 10 * $12.50 = $125. Maximum contracts: $1,000 / $125 = 8 ES contracts.\n\nMicro contracts (MES, MNQ) have 1/10th the tick value of their full-size counterparts. They allow more precise position sizing and are popular with smaller prop firm accounts. Many prop firm traders use a mix of full and micro contracts to fine-tune their exposure.","exampleWithNumbers":"TopStep $50K, trading NQ with $5.00/tick. Your stop-loss is 40 ticks (10 points). Risk per contract: 40 * $5.00 = $200. Daily loss limit: $1,000. Max contracts at this stop: $1,000 / $200 = 5 NQ contracts. If NQ moves 60 ticks (15 points) in your favor with 3 contracts: profit = 3 * 60 * $5.00 = $900.","category":"risk","relatedTerms":["pip-value","lot-size","position-sizing","max-contracts","risk-per-trade"]},"_links":{"self":"https://runvigil.app/api/glossary/tick-value","page":"https://runvigil.app/learn/tick-value","allTerms":"https://runvigil.app/api/glossary","learn":"https://runvigil.app/learn"}}