Ticks and Points – What in the World are These?

When trading the ES you will be referring everything to amount of ticks and points. Unlike with stocks which is in dollars, cents or points (which is simply dollars – one point is one dollar).

NOT WITH THE ES MINI!

The breakdown of what each tick and point is worth per one contract:

Each tick is worth $12.50

Each point has 4 ticks

Each point is worth $50

You can not buy or sell for any less than these rates.

For instance if you buy (enter long) at the price level of 1984 and exit 1985, this is one point, which is worth $50 per one contract.

If you sell (enter short) at the price level 1950 and exit at 1949.25, this is 3 ticks worth $37.50.

Don’t worry, this will make tons of sense once we start playing with the charts.

Think of it this way. When you go and buy milk you can only buy it in pints, quarts or gallons. You can’t buy it in a quart and a half bottle. The same with the ES. You can only buy it quarts (1/4 of a point – which is a tick) or a whole point (gallon).

Happy Trading,

Marina 'The Trader Chick' Villatoro

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