Tick Value Explained for Prop Firm Traders: The Number Behind Every Trade Decision
Tick value is the multiplier that converts a chart move into dollars — and getting it wrong in a position sizing calculation or a copier ratio setup produces incorrect risk exposure on every trade. Here's the complete reference.
Tick Value Explained for Prop Firm Traders: The Number Behind Every Trade Decision
Tick value is the dollar amount that one minimum price move (one tick) is worth per contract. It sounds like a simple lookup — and it is. But the number shows up in every risk calculation, every position sizing formula, every copier ratio, and every stop distance conversion. Getting it wrong in any of those places cascades into incorrect risk exposure across every trade.
This is the reference document. Keep it open when sizing positions or configuring copier ratios.
Complete Tick Value Reference Table
| Instrument | Full Name | Tick Size | Tick Value | Points/Dollar | Typical Daily Range |
|---|---|---|---|---|---|
| NQ | E-mini Nasdaq-100 | 0.25 pts | $5.00 | $20.00/pt | 150-300 pts ($3,000-$6,000) |
| MNQ | Micro E-mini Nasdaq-100 | 0.25 pts | $0.50 | $2.00/pt | Same range, 1/10th dollars |
| ES | E-mini S&P 500 | 0.25 pts | $12.50 | $50.00/pt | 40-80 pts ($2,000-$4,000) |
| MES | Micro E-mini S&P 500 | 0.25 pts | $1.25 | $5.00/pt | Same range, 1/10th dollars |
| CL | Crude Oil WTI | 0.01 | $10.00 | $1,000/dollar | $1-3 ($1,000-$3,000) |
| QM | E-mini Crude Oil | 0.025 | $12.50 | $500/dollar | Same range, half dollars |
| GC | Gold | 0.10 | $10.00 | $100/dollar | $10-30 ($1,000-$3,000) |
| MGC | Micro Gold | 0.10 | $1.00 | $10/dollar | Same range, 1/10th dollars |
| RTY | E-mini Russell 2000 | 0.10 pts | $5.00 | $50.00/pt | 15-30 pts ($750-$1,500) |
| M2K | Micro E-mini Russell 2000 | 0.10 pts | $0.50 | $5.00/pt | Same range, 1/10th dollars |
How to Use Tick Value in Position Sizing
The position sizing formula from our position sizing guide:
Max contracts = (Dollar risk per trade) ÷ (Stop ticks × Tick value)
The tick value is the denominator component that converts tick distance to dollars. Examples:
NQ, 10-tick stop, $60 dollar risk:
$60 ÷ (10 × $5.00) = $60 ÷ $50 = 1.2 → round to 1 NQ contract
ES, 8-tick stop, $60 dollar risk:
$60 ÷ (8 × $12.50) = $60 ÷ $100 = 0.6 → round to 6 MES contracts (each MES = $1.25/tick)
CL, 10-tick stop ($0.10), $60 dollar risk:
$60 ÷ (10 × $10.00) = $60 ÷ $100 = 0.6 → round to 1 QM contract (QM stop value: 10 × $12.50 = $125 — slightly over budget, accept or reduce to 4-tick stop)
Cross-Instrument Copier Ratio Calculation
When copying from one instrument to another (NQ leader → MNQ follower, or NQ leader → ES follower), the ratio needs to equalize dollar risk per tick between leader and follower.
NQ → MNQ (dollar equivalence ratio):
Leader NQ tick value: $5.00
Follower MNQ tick value: $0.50
Ratio = $5.00 ÷ $0.50 = 10 MNQ per 1 NQ
NQ → ES (dollar equivalence ratio):
Leader NQ tick value: $5.00
Follower ES tick value: $12.50
Ratio = $5.00 ÷ $12.50 = 0.4 ES per 1 NQ
Since 0.4 ES isn't valid: use 4 MES per 1 NQ ($1.25/tick × 4 = $5.00/tick — exact match)
NQ → CL (dollar equivalence ratio):
Leader NQ tick value: $5.00
Follower CL tick value: $10.00
Ratio = $5.00 ÷ $10.00 = 0.5 CL per 1 NQ
Use 1 QM per 1 NQ ($12.50/tick — slightly larger exposure, adjust if needed)
Quick Mental Math Shortcuts
For in-session mental calculations:
- 1 NQ point = $20. 10 NQ points = $200 per contract.
- 1 ES point = $50. 10 ES points = $500 per contract.
- 1 NQ tick (0.25) = $5. Count ticks, multiply by 5.
- 1 ES tick (0.25) = $12.50. Count ticks, multiply by 12.5.
- MNQ and MES: divide NQ/ES dollar amounts by 10.
These shortcuts get to the right answer quickly for the most common position sizing decisions without pulling up a reference table mid-session.
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