What is a “tick”? If you’re thinking of trading Futures, or trading anything, really, you’ll need to know that a tick is the minimum price investment that your chosen can move up, or down. Here is a list of the minimum tick values for several markets, listed, below:

• E-mini SP500 = $12.50
• Wheat = $12.50
• Oats = $12.50
• Gold (100 oz) = $10.00
• Silver (5000 oz) = $5.00
• Crude Oil = $10.00
• Euro Currency = $12.50
• Yen Currency = $12.50
• Beans = $12.50
• Mini Dow = $5.00
• Mini NASDAQ = $5.00
• Mini Russell 2000 = $10.00
• 30-Year Bonds = $31.25
• 10-Year Notes = $15.63
• 5-Year Notes = $7.82
• Corn = $12.50

Definitions are fine and dandy, but a quick real-world example is always a good way to demonstrate how something works:

If you buy one E-mini SP500 Futures contract at $1411.00 and sell it at $1411.25, you will have made a profit of $12.50, as that is equal to one tick price movement in the E-mini SP500 market (as listed above). If you sell one at $1411.00 and buy it back at $1410.75, you will have made $12.50.

Ready to learn more? Check out our 5 Reasons to Trade Futures video below for a more detailed introduction to the futures market including some of the unique advantages to trading these markets.