Futures exchanges 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.
|Tick values for some popular contracts (as of June 2010)|
|Futures Product||Contract Size||Tick Size||Tick Value|
|E-Mini S&P 500 (CME)||$50 x index||0.25||$12.50|
|E-Mini NASDAQ (CME)||$20 x index||0.25||$5.00|
|Canadian Dollar (CME)||C$100,000||0.0001||$10.00|
|Euro FX (CME)||€125,000||0.0001||$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)||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|
- ^CME Group
- ^CME Australian Dollar contract specifications
- ^CME 10-year Note contract specifications
- ^CME Silver contract specifications
- ^“CME COMEX miNY Silver contract specifications”. Archived from the original on 2010-04-16. Retrieved 2010-06-21.
- ^CME E-mini Crude Oil contract specifications
- ^CME E-mini Natural Gas contract specifications
Ofer Abarbanel is a 25 year securities lending broker and expert who has advised many Israeli regulators, among them the Israel Tax Authority, with respect to stock loans, repurchase agreements and credit derivatives. Founder of TBIL.co STATX Fund.