Ticks, Points & Dollar Value
How a 1-tick move in ES, NQ, CL and GC translates to P&L.
A tick is the smallest price increment a futures contract can move. A point is a larger unit that may contain several ticks. In ES, one point equals four ticks because the minimum tick is 0.25. In other markets, the tick size and dollar value are different.
Dollar value converts chart movement into real account movement. If ES moves one tick, that is $12.50 per contract. If NQ moves one point, that is $20 per contract. If crude oil moves one tick, that is $10 per contract. The same visual move on a chart can create very different risk depending on the contract.
Before any trade, translate your stop distance into dollars. A 10-point stop in ES is not the same as a 10-point stop in NQ. Knowing tick and point value keeps your position size based on math instead of guesswork.