Commodity tick
Encyclopedia
Futures exchange
s establish a minimum amount that the price of a commodity can fluctuate upward or downward. This minimum fluctuation (trade increment) is known as a tick or commodity tick. Hence, a tick is any fluctuation in the price of a security
.
Each futures contract
has a different size, quantity, valuation etc., so each tick size
that can be applied to any one futures contract, is dependent on the previous variables.
Tick size is important as it determines the possible prices available. For example, each "tick" for the grain market (soybeans, corn and wheat) is 0.25 cents per bushel, on one 5,000-bushel futures contract.
Futures exchange
A futures exchange or futures market is a central financial exchange where people can trade standardized futures contracts; that is, a contract to buy specific quantities of a commodity or financial instrument at a specified price with delivery set at a specified time in the future. These types of...
s establish a minimum amount that the price of a commodity can fluctuate upward or downward. This minimum fluctuation (trade increment) is known as a tick or commodity tick. Hence, a tick is any fluctuation in the price of a security
Security (finance)
A security is generally a fungible, negotiable financial instrument representing financial value. Securities are broadly categorized into:* debt securities ,* equity securities, e.g., common stocks; and,...
.
Each futures contract
Futures contract
In finance, a futures contract is a standardized contract between two parties to exchange a specified asset of standardized quantity and quality for a price agreed today with delivery occurring at a specified future date, the delivery date. The contracts are traded on a futures exchange...
has a different size, quantity, valuation etc., so each tick size
Tick size
In financial markets, a tick size is the smallest increment by which the price of stocks, futures contracts or other exchange-traded instrument can move....
that can be applied to any one futures contract, is dependent on the previous variables.
Tick size is important as it determines the possible prices available. For example, each "tick" for the grain market (soybeans, corn and wheat) is 0.25 cents per bushel, on one 5,000-bushel futures contract.
| Futures Product | Contract Size | Tick Size | Tick Value |
|---|---|---|---|
| E-Mini S&P 500 E-mini S&P E-Mini S&P, often abbreviated to "E-mini" and designated by the commodity ticker symbol ES, is a stock market index futures contract traded on the Chicago Mercantile Exchange's Globex electronic trading platform... (CME Chicago Mercantile Exchange The Chicago Mercantile Exchange is an American financial and commodity derivative exchange based in Chicago. The CME was founded in 1898 as the Chicago Butter and Egg Board. Originally, the exchange was a non-profit organization... ) |
$50 x index | 0.25 | $12.50 |
| E-Mini NASDAQ NASDAQ futures NASDAQ futures are investment instruments which allow an investor to hedge with or speculate on the future value of various components of the NASDAQ market index.-In General:... (CME) |
$20 x index | 0.25 | $5.00 |
| Australian Dollar | A$100,000 | 0.0001 | $10.00 |
| British Pound | £62,500 | 0.0001 | $6.25 |
| Canadian Dollar (CME) | C$100,000 | 0.0001 | $10.00 |
| Euro FX (CME) | €125,000 | 0.0001 | $12.50 |
| Japanese Yen | ¥12,500,000 | 0.000001 | $12.50 |
| Mexican Peso | MP 500,000 | 0.000025 | $12.50 |
| New Zealand Dollar | NZ$100,000 | 0.0001 | $10.00 |
| Swiss Franc | SF 125,000 | 0.0001 | $12.50 |
| 30 Day Fed Funds | $5,000,000 (annualized) | 0.00005 | $20.835 |
| 2 Year Treasury Note | $200,000 | 1/4 of 1/32 | $15.625 |
| 5 Year Treasury Note | $100,000 | 1/4 of 1/32 | $7.8125 |
| 10 Year Treasury Note | $100,000 | 1/2 of 1/32 | $15.625 |
| 30 Year Treasury Bond | $100,000 | 1/32 | $31.25 |
| Gold (CBOT Chicago Board of Trade The Chicago Board of Trade , established in 1848, is the world's oldest futures and options exchange. More than 50 different options and futures contracts are traded by over 3,600 CBOT members through open outcry and eTrading. Volumes at the exchange in 2003 were a record breaking 454 million... ) |
100 oz | $0.10/oz | $10.00 |
| Silver (CBOT) | 5,000 oz | $0.005/oz | $25.00 |
| Silver (COMEX miNY) | 1000 oz | $0.0125/oz | $12.50 |
| E-mini Crude Oil | 500 Barrels | $0.025 | $12.50 |
| E-mini Natural Gas | 2,500 million BTU | $0.005 | $12.50 |