Cryptocurrency Q&A
How much do futures pay per tick?
How much do futures pay per tick?
Nicola
Fri Sep 06 2024
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6 answers
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Could you please clarify for me, in simple terms, how much money is earned per tick in futures trading? I understand that the value of a tick can vary based on the underlying asset and the contract specifications, but I'm curious about a general overview of how much one might expect to earn with each tick movement. Is there a standard formula or range of values that can be applied across different futures contracts? Thank you for your assistance in helping me understand this important aspect of futures trading.
6 answers
Giuseppe
Sat Sep 07 2024
If the price of /ES rises or falls by 30 points, which is approximately 1% of its value, the gain or loss for a trader will be calculated accordingly.
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Chiara
Sat Sep 07 2024
The minimum tick in the financial markets, specifically for futures contracts, is an essential concept for traders to understand. It represents the smallest price movement that a contract can make.
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SakuraBlooming
Sat Sep 07 2024
Specifically, a 30-point move divided by the minimum tick of 0.25 equals 120 ticks. Each tick being $12.50, the total gain or loss will be $1,500 (120 ticks x $12.50 per tick).
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isabella_oliver_musician
Sat Sep 07 2024
For instance, in the case of the S&P 500 E-mini futures contract (/ES), the minimum tick is defined as one-quarter of an index point, which translates to $12.50 per contract.
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CryptoElite
Sat Sep 07 2024
It's important for traders to be aware of the minimum tick value as it directly impacts their potential profits and losses.
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