ENTRY  N° 75  /  80
Glossary

Tick value

Part of the theme Derivatives and contracts.

Definition

Tick value is the money that one tick of price movement is worth on one contract.

It lets you translate a price move straight into dollars gained or lost. For a standard stock-index future, a 0.25 point tick is worth 12.50 dollars.

Formula / example: Tick value = tick size x multiplier (or x contract size)

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