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Minimum tick movement vs 1 contract value


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Minimum tick movement vs 1 contract value

  #1 (permalink)
gracepips
Northern Ireland, UK
 
Posts: 68 since Dec 2010
Thanks Given: 76
Thanks Received: 43

Hi all,

I'm experienced in the Forex spot market but am now just beginning my transition to the Futures Market. So I have a basic question that may help others like me who are at the start of their new journey.

In Forex things were simple, 1 pip move was the smallest move an instrument could make and I could workout my correct position size knowing the value of a Standard lot size.

The Futures market for me is not as straight forward, but will be, once I understand it better, hence my question. Fat-Tails helped me in a previous post where I had mistakenly though the FDAX moved in 1tick increments where in fact it moved in 0.5 ticks (so I though my 8 range bars were only showing 4 ticks movement).

So to my question; could someone please add the following info to the instruments listed below, I need to smallest tick movement and what that movement equals in $ per 1 lot.

For example:

ES-mini = 0.25 tick / $12.50 per tick
CL
TF
YM
DX
EMD
GC
NG

I realise this is elementary stuff but I need to start at the beginning and learn. Thanks for your patience with me

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  #2 (permalink)
 
redratsal's Avatar
 redratsal 
Milan (I)
 
Experience: Advanced
Platform: Ninjatrader
Broker: Kinetick
Trading: FDAX,6E,CL,YM,NQ,ES
Posts: 1,648 since Oct 2010
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gracepips View Post
Hi all,

I'm experienced in the Forex spot market but am now just beginning my transition to the Futures Market. So I have a basic question that may help others like me who are at the start of their new journey.

In Forex things were simple, 1 pip move was the smallest move an instrument could make and I could workout my correct position size knowing the value of a Standard lot size.

The Futures market for me is not as straight forward, but will be, once I understand it better, hence my question. Fat-Tails helped me in a previous post where I had mistakenly though the FDAX moved in 1tick increments where in fact it moved in 0.5 ticks (so I though my 8 range bars were only showing 4 ticks movement).

So to my question; could someone please add the following info to the instruments listed below, I need to smallest tick movement and what that movement equals in $ per 1 lot.

For example:

ES-mini = 0.25 tick / $12.50 per tick
CL
TF
YM
DX
EMD
GC
NG

I realise this is elementary stuff but I need to start at the beginning and learn. Thanks for your patience with me

Hi,

For CME try here https://www.interactivebrokers.com/en/trading/exchanges.php?sortproducts=IS&search.x=63&search.y=19&exch=globex&ib_entity=llc and click on the instrument to get details.

For worlwide markets here https://www.interactivebrokers.com/en/p.php?f=exchanges

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  #3 (permalink)
 
Fat Tails's Avatar
 Fat Tails 
Berlin, Europe
Market Wizard
 
Experience: Advanced
Platform: NinjaTrader, MultiCharts
Broker: Interactive Brokers
Trading: Keyboard
Posts: 9,888 since Mar 2010
Thanks Given: 4,242
Thanks Received: 27,102


Go to the source, which is the exchange

If you look for accurate information, you should always go to the source of that information.

The products for which you asked the tick size and tick value are traded at CME, NYMEX and ICE. So the best choice is to go the website of these exchanges, select the product you want to trade and have a look at the contract specifications.


Example

For example for CL, the contract specifications can be found here:

Light Sweet Crude Oil

What you need to know is this

-> Contract Unit: 1000 bbl (this is the multiplier)
-> Price Quotation: US Dollars and Cents per barrel
-> Minimum Fluctuation: $ 0.01 per barrel (this is your ticksize)

The tick value can be calculated as [B] tick value = tick size * multiplier[/B]

For CL you will get:

tick value = $ 0.01 * 1,000 = $ 10

I think it is easy to understand. It is $ 0.01 per barrel, but as you trade a size of 1,000 barrels this becomes $ 10.

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  #4 (permalink)
 RM99 
Austin, TX
 
Experience: Advanced
Platform: TradeStation
Trading: Futures
Posts: 839 since Mar 2011
Thanks Given: 124
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Fat Tails View Post
Go to the source, which is the exchange

If you look for accurate information, you should always go to the source of that information.

The products for which you asked the tick size and tick value are traded at CME, NYMEX and ICE. So the best choice is to go the website of these exchanges, select the product you want to trade and have a look at the contract specifications.


Example

For example for CL, the contract specifications can be found here:

Light Sweet Crude Oil

What you need to know is this

-> Contract Unit: 1000 bbl (this is the multiplier)
-> Price Quotation: US Dollars and Cents per barrel
-> Minimum Fluctuation: $ 0.01 per barrel (this is your ticksize)

The tick value can be calculated as [B] tick value = tick size * multiplier[/B]

For CL you will get:

tick value = $ 0.01 * 1,000 = $ 10

I think it is easy to understand. It is $ 0.01 per barrel, but as you trade a size of 1,000 barrels this becomes $ 10.

Great post...very concise. This is exactly the type of code algo guys use to convert their strategies to other instruments with different increments.

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  #5 (permalink)
gracepips
Northern Ireland, UK
 
Posts: 68 since Dec 2010
Thanks Given: 76
Thanks Received: 43


Fat Tails View Post
Go to the source, which is the exchange

If you look for accurate information, you should always go to the source of that information.

The products for which you asked the tick size and tick value are traded at CME, NYMEX and ICE. So the best choice is to go the website of these exchanges, select the product you want to trade and have a look at the contract specifications.


Example

For example for CL, the contract specifications can be found here:

Light Sweet Crude Oil

What you need to know is this

-> Contract Unit: 1000 bbl (this is the multiplier)
-> Price Quotation: US Dollars and Cents per barrel
-> Minimum Fluctuation: $ 0.01 per barrel (this is your ticksize)

The tick value can be calculated as [B] tick value = tick size * multiplier[/B]

For CL you will get:

tick value = $ 0.01 * 1,000 = $ 10

I think it is easy to understand. It is $ 0.01 per barrel, but as you trade a size of 1,000 barrels this becomes $ 10.

Once again Fat Tails thank you! Do you think you could spend a week with me in the UK and I'll supply the tea and scones LOL. Seriously the help is appreciated...........

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  #6 (permalink)
 
Fat Tails's Avatar
 Fat Tails 
Berlin, Europe
Market Wizard
 
Experience: Advanced
Platform: NinjaTrader, MultiCharts
Broker: Interactive Brokers
Trading: Keyboard
Posts: 9,888 since Mar 2010
Thanks Given: 4,242
Thanks Received: 27,102


gracepips View Post
Once again Fat Tails thank you! Do you think you could spend a week with me in the UK and I'll supply the tea and scones LOL. Seriously the help is appreciated...........

Glad you mention tea and scones. It is one of my favorites.

Actually, I spent some time in Britain, and what I loved most was to prepare an English breakfast on a gas stove - not talking about Kellogg's flakes but fried eggs, bacon and tomatoes. I have never seen such gas stoves on the Continent. Do not know whether they still exist, they had a battery of open flames mounted on top, which made it very easy to broil all sorts of foods.

Otherwise, I mostly tried to avoid the dishes of the aborigines and heavily relied on Indian and Chinese restaurants

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  #7 (permalink)
kenz987
Houston, TX
 
Posts: 23 since Apr 2010
Thanks Given: 17
Thanks Received: 5

"ES-mini = 0.25 tick / $12.50 per tick"
I think that should be 0.25 of a point, a point being 1.00 in ES, like 1326.00 to 1327.00
and a tick is one-fourth of that.
1 point = $50.00,
1 tick - $12.50
... or maybe it's just semantics - someone care to correct me.?

ps: "FDAX moved in 1 tick increments where in fact it moved in 0.5 ticks (so I though my 8 range bars were only showing 4 ticks movement)."
DAX 1 point = 2 ticks, so 1 tick = 0.5 point.

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  #8 (permalink)
 uexkuell 
Pt Vala
 
Experience: Advanced
Platform: Proprietary
Trading: CL, EUR, DAX
Posts: 58 since Apr 2010
Thanks Given: 12
Thanks Received: 31


gracepips View Post
need to smallest tick movement and what that movement equals in $ per 1 lot.

This site is in german but you will easily get the meaning:

DeiFin - Futures-Kontrakte: Übersicht- Kontraktspezifikationen

(Tickwert means tick value)

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  #9 (permalink)
gracepips
Northern Ireland, UK
 
Posts: 68 since Dec 2010
Thanks Given: 76
Thanks Received: 43


uexkuell View Post
This site is in german but you will easily get the meaning:

DeiFin - Futures-Kontrakte: Übersicht- Kontraktspezifikationen

(Tickwert means tick value)

Thanks uexkuell, this is very helpful...........

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  #10 (permalink)
 
max-td's Avatar
 max-td 
Frankfurt
 
Experience: Intermediate
Platform: NinjaTrader
Trading: FGBL 6E B4
Posts: 1,752 since Jun 2009
Thanks Given: 2,309
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to complete the hint -collection here :

the NinjaTrader - Instrument Manager (Tools > Instrument Manager )
also gives you an overview of tickvalues + more of your contracts :

you see how much 1 full point is worth in $$
and what value the smallest possible size (ticksize) is.

then you need some maths

max-td
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Last Updated on April 5, 2011


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