Speaker A
All futures contracts have a minimum price fluctuation, also known as a tick.
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Speaker A
Tick sizes are set by the exchange and vary by contract instrument.
Speaker A
For example, the tick size of an E-mini S&P 500 futures contract is equal to one quarter of an index point.
Speaker A
Since an index point is valued at $50 for the E-mini S&P 500, a movement of one tick would equal 2.52 times $50 or be equal to $12.50.
Speaker A
The tick size of the NYMEX WTI crude oil contract is equal to 1 cent, the WTI contract unit is 1,000 barrels, so the value of a one tick move is $10.
Speaker A
Tick sizes are defined by the exchange and vary depending on size of the financial instrument and requirements of the marketplace.
Speaker A
Tick sizes are set to provide optimal liquidity and tight bid-ask spreads.
Speaker A
The minimum price fluctuation for any CME Group contract can be found on the product specifications page.
