Futures Point Value: How Dollar Risk Per Tick Really Works
Key Takeaways
- Two numbers, one job. Point value is the dollars in a full point; tick value is the dollars in the smallest move. Together they turn ticks into dollar risk.
- Know the specs. One ES tick is $12.50, MES $1.25, NQ $5.00, MNQ $0.50, and both CL and GC are $10.00 per tick as of July 2026.
- Micros cut the dollars by ten. A micro trades the same chart at one-tenth the dollar risk per tick, which makes it the sensible place to learn sizing.
- Size from dollars, not contracts. Set your dollar risk first, then divide by (stop in ticks times tick value) to get your contract count.
- The rules are in dollars. Your daily loss limit and drawdown are dollar figures, so the contract you pick decides how many attempts they allow.
- Confirm before you trade. Contract specs and account rules can change, so check the live figures every time.
Table of Contents
- What Point Value and Tick Value Actually Mean
- How to Turn Tick Value Into Dollar Risk
- Contract Specs: The Numbers You Actually Trade
- Sizing to the Rules of a Funded Account
- The TradeFundrr Standard: Know the Dollar Before the Trade
Every futures trader eventually asks the same practical question: if this contract moves one tick against me, how many dollars did I just lose. That number is the point value, and understanding futures point value and dollar risk is the difference between guessing at your position size and knowing it. A tick is the smallest price increment a contract can move, and the point value tells you what a full point of movement is worth in dollars. Multiply the two and you have your dollar risk per tick.
This matters more inside a funded account than almost anywhere else. A funded account runs on rules: a daily loss limit, a maximum drawdown, and position limits that all measure your exposure in dollars, not in ticks or points. If you do not know that one ES tick is worth $12.50 while one MES tick is worth $1.25, you cannot translate a stop distance into a dollar figure, and you cannot confirm that the trade fits the rules before you place it. The specs below come from CME contract specifications and are current as of July 2026.
In this guide we will define point value and tick value in plain terms, show how to turn them into dollar risk per trade, walk through the specs for the most traded contracts, and connect it all to sizing inside a structured, simulated environment.
What Point Value and Tick Value Actually Mean
Point value is the dollar amount that a one-point move in the underlying is worth for one contract. Tick value is the dollar amount of the smallest allowable price move. The tick is a fraction of a point, so the tick value is a fraction of the point value. For the E-mini S&P 500 (ES), a full point is worth $50 and the tick is 0.25 points, so one tick is worth $12.50. The relationship never changes for a given contract, which is what makes futures point value and dollar risk something you can calculate rather than estimate.
The reason two numbers exist is that traders think in ticks when they place stops and in points when they read a chart. A stop placed eight ticks away on the ES is a two-point stop, and at $12.50 per tick that is $100 of risk for a single contract. The CME contract specifications publish the tick size and point value for every listed contract, and those are the figures your platform uses to calculate your open profit and loss in real time.
Why Micros Changed the Math
Micro contracts are one-tenth the size of their full-size counterparts, so their tick values are one-tenth as large. The Micro E-mini S&P 500 (MES) moves in the same 0.25-point ticks as the ES, but each tick is worth $1.25 instead of $12.50. That smaller dollar value is why micros are the sensible place to learn sizing: the same chart, the same setups, and a fraction of the dollar risk per tick. For a fuller comparison, see our post on micro futures versus E-mini futures.
How to Turn Tick Value Into Dollar Risk
The formula is short. Dollar risk on a trade equals the stop distance in ticks, multiplied by the tick value, multiplied by the number of contracts. If you buy two ES contracts with a ten-tick stop, that is ten ticks times $12.50 times two contracts, or $250 of defined risk. Nothing about that number is a guess. You know it before you click, which is exactly the position a funded account expects you to be in.
Running the same trade in micros shows why the instrument matters. Two MES contracts with the same ten-tick stop risk ten times $1.25 times two, or $25. Same setup, same stop, one-tenth the dollars. When your daily loss limit is a fixed dollar figure, the contract you choose decides how many losing trades that limit can absorb.
Contract Specs: The Numbers You Actually Trade
These are the contracts most funded futures traders use, with the tick size, tick value, and point value for each. The dollar-per-tick column is the one that drives your risk. Confirm the live specs on the exchange before you trade, because contracts can be updated.
| Contract | Tick size | Tick value | Point value |
|---|---|---|---|
| ES (E-mini S&P 500) | 0.25 | $12.50 | $50 |
| MES (Micro S&P 500) | 0.25 | $1.25 | $5 |
| NQ (E-mini Nasdaq-100) | 0.25 | $5.00 | $20 |
| MNQ (Micro Nasdaq-100) | 0.25 | $0.50 | $2 |
| CL (Crude oil) | 0.01 | $10.00 | $1,000 |
| GC (Gold) | 0.10 | $10.00 | $100 |
Source: CME Group contract specifications, current as of July 2026. Point value is the dollar worth of a one-point (or one-dollar) move; tick value is the dollar worth of the minimum move.
Dollar value of one tick, per contract
One minimum price move (one tick), one contract, in US dollars
Per-contract tick values from CME contract specifications, current as of July 2026. Bars are scaled to the E-mini S&P 500 tick value. Always confirm the live specs for the exact contract you trade.
Reading the Table for Risk, Not Trivia
Notice that crude oil and gold both carry a $10 tick, but crude moves in penny ticks while gold moves in dime ticks, and their point values are very different. That is why you cannot compare contracts by tick value alone. A fast product with a large tick value can put you at your daily loss limit in a handful of ticks, so the same rule set feels tighter on some contracts than others. Knowing the dollar-per-tick figure is what lets you compare them honestly and choose the one that fits your account size.
Sizing to the Rules of a Funded Account
Once you can convert ticks to dollars, position sizing becomes arithmetic rather than instinct. Start from the dollars you are willing to risk on the trade, not from the number of contracts you want to hold. Decide the stop distance from the chart, convert it to a dollar figure per contract, and divide your risk budget by that number to get your contract count. This is the same discipline we cover in position sizing by account risk, applied to the specific dollar value of a tick.
- Confirm the tick value. Pull the exact dollar-per-tick figure for the contract from the exchange specs.
- Set your dollar risk first. Decide the maximum dollars for the trade before you look at contracts.
- Measure the stop in ticks. Read the stop distance off the chart and convert it to ticks.
- Divide to get contracts. Risk budget divided by (ticks times tick value) gives your contract count, rounded down.
- Check it against the account rules. Confirm the dollar risk fits your per-trade limit, your daily loss limit, and the maximum drawdown.
Because the daily loss limit is a dollar figure, the contract you choose quietly sets how many attempts you get. On a $50,000 simulated account, a handful of full-size ES stops can reach a daily limit that dozens of MES stops would not touch. Neither is right or wrong, but only one of them matches your plan, and you can only tell which by doing the dollar math first.
The TradeFundrr Standard: Know the Dollar Before the Trade
Point value is not a piece of trivia to memorize; it is the unit your whole account is measured in. Every rule that governs a funded account, from the daily loss limit to the maximum drawdown, is stated in dollars, and futures point value and dollar risk are how you translate a chart into those dollars. A trader who knows that one ES tick is $12.50 and one MNQ tick is fifty cents is a trader who can size every position to the rules without guessing.
A structured, simulated environment is the right place to build that habit. You can run the same setup in a micro and a full-size contract, watch the dollar risk move in lockstep with your stop, and learn which contract lets your strategy breathe inside the account rules. TradeFundrr provides up to $100,000 in simulated futures capital with clear, written rules, so you can practice converting ticks to dollars until it is automatic. Confirm the current contract specs and your own account rules before every trade, since both can change.
Frequently Asked Questions
What is point value in futures?
Point value is the dollar amount that a one-point move in a futures contract is worth for a single contract. For the E-mini S&P 500 (ES) a one-point move is worth $50. Tick value is the dollar worth of the smallest allowable move, which for the ES is 0.25 points, or $12.50 per tick.
How do I calculate dollar risk per trade in futures?
Multiply the stop distance in ticks by the tick value, then by the number of contracts. A ten-tick stop on two ES contracts is 10 ticks times $12.50 times 2 contracts, which equals $250 of defined risk that you know before you enter.
What is the tick value of the ES and MES?
The E-mini S&P 500 (ES) has a 0.25-point tick worth $12.50, and a full point is worth $50. The Micro E-mini S&P 500 (MES) uses the same 0.25-point tick, but each tick is worth $1.25 and a full point is worth $5, one-tenth the size. Confirm current specs with CME before trading.
What is the tick value of the NQ and MNQ?
The E-mini Nasdaq-100 (NQ) has a 0.25-point tick worth $5.00 and a $20 point value. The Micro E-mini Nasdaq-100 (MNQ) uses the same tick but each tick is worth $0.50 with a $2 point value. These figures are current as of July 2026.
Why does tick value matter in a funded account?
A funded account measures your risk in dollars through its daily loss limit, maximum drawdown, and position limits. Tick value is how you convert a stop distance on the chart into the dollar figure those rules track, so you can confirm a trade fits before you place it.
Are micro contracts better for funded accounts?
Micros carry one-tenth the dollar risk per tick of their full-size versions, so they let you trade the same setups while staying comfortably inside a daily loss limit. They are a common choice for learning sizing and for smaller simulated account balances, though the right contract depends on your plan.
Do crude oil and gold have the same tick value?
Both crude oil (CL) and gold (GC) carry a $10 tick value as of July 2026, but they move differently: crude ticks in cents with a $1,000 point value, and gold ticks in dimes with a $100 point value. Comparing contracts by tick value alone can mislead, so check the point value too.
Can I practice futures sizing without real money?
Yes. A structured, simulated environment lets you run the same setup in a micro and a full-size contract and watch the dollar risk change with your stop. Repeating this without capital at risk turns tick-to-dollar conversion into an automatic habit before any funding is involved.
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