The dollar amount gained or lost per minimum price increment — the unit your P&L is built from.
Tick Value is the dollar value of one minimum price movement (one tick) of a futures contract. ES: 0.25 index points = $12.50 per tick per contract ($50/point). NQ: 0.25 points = $5 per tick ($20/point). Tick value converts chart distances into dollars: an 11-point ES move is 44 ticks = $550 per contract. Knowing tick value cold is non-negotiable — your position sizing, stop placement, and R:R math all depend on it.
You can't manage risk you can't measure. Tick value is the measuring tape.
Your stop is 4 points on ES = 16 ticks × $12.50 = $200 risk per contract. On a $50K account risking 1% ($500), that's 2 contracts. No calculator needed once you know the ticks.
Tick value is the unit your position sizing is built from. Before entering the Run, you convert your dollar risk to contracts using tick value — the Protocol requires you to know your size precisely.
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