Module 1F: Futures Foundations · Lesson 2 of 13 · Back to Futures Foundations · Course
What you’ll learn
- what a contract specification tells you
- the tick size and tick value of ES, MES, NQ, MNQ, CL, MCL, GC and MGC
- how to work out profit and loss in dollars and pounds
- the common mistakes with points and ticks
What a contract specification is
Every futures contract has a contract specification (“spec”) published by the exchange. It tells you:
- Contract size – how much of the underlying one contract covers (for example $5 × the index, or 1,000 barrels).
- Tick size – the smallest price step the contract can move.
- Tick value – what one tick is worth, per contract, in dollars.
- Trading hours, contract months and expiry – covered in 1F.6 and 1F.5.
Once you know the tick value, everything else is arithmetic: profit or loss = ticks moved × tick value × number of contracts.
The eight contracts most beginners meet
| Contract | Code | Contract size | Tick size | Value of 1 tick | Value of a 1-point (or $1) move |
|---|---|---|---|---|---|
| E-mini S&P 500 | ES | $50 × S&P 500 index | 0.25 index points | $12.50 | $50 per point |
| Micro E-mini S&P 500 | MES | $5 × S&P 500 index | 0.25 index points | $1.25 | $5 per point |
| E-mini Nasdaq-100 | NQ | $20 × Nasdaq-100 index | 0.25 index points | $5.00 | $20 per point |
| Micro E-mini Nasdaq-100 | MNQ | $2 × Nasdaq-100 index | 0.25 index points | $0.50 | $2 per point |
| WTI Crude Oil | CL | 1,000 barrels | $0.01 per barrel | $10.00 | $1,000 per $1 move |
| Micro WTI Crude Oil | MCL | 100 barrels | $0.01 per barrel | $1.00 | $100 per $1 move |
| Gold | GC | 100 troy ounces | $0.10 per ounce | $10.00 | $100 per $1 move |
| Micro Gold | MGC | 10 troy ounces | $0.10 per ounce | $1.00 | $10 per $1 move |
Source: CME Group contract specifications and rulebook, checked 18 October 2026. Exchanges can change specifications, so always check the CME page or your platform before you trade.
Worked examples
All prices and the exchange rate are hypothetical, for illustration only. We use £1 = $1.30.
Micro E-mini S&P 500 (MES)
You buy 2 MES at 6,000.00 with a stop at 5,994.00. The stop is 6 points away. Each point is 4 ticks, so that’s 24 ticks.
Loss if stopped: 24 ticks × $1.25 × 2 contracts = $60, or about £46, plus costs.
E-mini Nasdaq-100 (NQ) vs Micro (MNQ)
The Nasdaq-100 often moves 100 points or more in a day. On 1 NQ, 100 points = $2,000 (about £1,540). On 1 MNQ, the same move is $200 (about £154). Same chart, ten times the money.
Crude oil (CL vs MCL)
Oil moves from $70.00 to $70.50 – that’s 50 ticks. On 1 CL: 50 × $10 = $500. On 1 MCL: 50 × $1 = $50.
Gold (GC vs MGC)
Gold moves $15 an ounce – that’s 150 ticks. On 1 GC: 150 × $10 = $1,500. On 1 MGC: 150 × $1 = $150.
Points, ticks and handles
- On the index contracts, a point is a full index point (6,000 to 6,001) and is 4 ticks. Traders sometimes call a point a “handle”.
- On oil, prices are quoted in dollars and cents per barrel, so one tick is one cent.
- On gold, one tick is 10 cents an ounce.
The most common beginner mistake is mixing up points and ticks. A “10-tick stop” on MES is only 2.5 points. A “10-point stop” is 40 ticks. Always check which one a course, a platform or a prop firm rule means.
Converting to pounds
US futures are priced in dollars, so profits, losses and fees are in dollars too. If your account is in pounds, your broker converts – usually with a fee. To estimate in pounds, divide by the exchange rate: $60 ÷ 1.30 ≈ £46. See pip, point and tick values for the same idea on other products.
Key takeaways
- Profit or loss = ticks × tick value × contracts.
- MES ticks are $1.25, ES $12.50, MNQ $0.50, NQ $5, MCL $1, CL $10, MGC $1, GC $10 (CME, checked 18 October 2026).
- Micros are one tenth the size of the standard contract.
- Know whether a rule or stop is in points or ticks.
Quick check
- What is one tick worth on 1 MNQ?
- You risk 8 points on 3 MES contracts. What’s the risk in dollars?
- Gold moves $4 against you on 2 MGC. What’s the loss?
Answers: 1) $0.50. 2) 8 points = 32 ticks × $1.25 × 3 = $120. 3) $4 = 40 ticks × $1 × 2 = $80.
FAQs
Why does my platform show a different tick value?
Check you’re looking at the same contract (micro vs mini) and that it isn’t showing the value in pounds after conversion. The CME spec is the official source.
Do prop firms use the same tick values?
Prop firm simulated accounts use the exchange contract specs, so the tick values are the same. Their rules (such as maximum contracts) are set on top.
Disclaimer: This page is general education, not financial, investment or tax advice or a personal recommendation, and it doesn’t take your circumstances into account. Examples are hypothetical, for illustration only, and not an invitation to buy or sell. Learning to trade doesn’t guarantee profits. Past performance is not a reliable guide to future results. Futures, spread bets and CFDs are complex and carry a high risk of losing money quickly because of leverage, and most retail traders lose money. With a real futures account, losses can exceed your deposit. Only trade with money you can afford to lose, and speak to an independent FCA-authorised adviser if you’re unsure. Contract specifications, market hours and margin concepts were checked against CME Group on 18 October 2026 and can change. Read our full risk warning.