Price, quantity and contract size are different
A tick is the minimum quoted price step for a specified trading regime. A lot defines an allowed quantity unit; its meaning depends on the market. Contract size or a multiplier connects a quote to a cash amount. One tick does not mean one contract.
For an original linear teaching instrument, set tick size 0.25 points, value 20 USD per point per contract, and a minimum lot of one contract. These are invented terms, not a complete real-product specification. Check the venue’s rules for the actual instrument and regime.
| Parameter | Value | Unit |
|---|---|---|
| Price tick | 0.25 | Point |
| Point value | 20 | USD/(point·contract) |
| Minimum lot | 1 | Contract |
Convert a tick into cash first
Tick value =0.25 points ×20 USD/(point·contract) =5 USD/contract. Points cancel, leaving money per contract. Do not multiply the quantity twice.
Three ticks are 0.75 points, not three points. One contract gives 3×5=15 USD; two give 3×5×2=30 USD. Commission and other costs are zero here.
| Change, points | Ticks | Contracts | Result, USD |
|---|---|---|---|
| 0.75 | 3 | 1 | 15.00 |
| -0.75 | -3 | 1 | -15.00 |
| 0.75 | 3 | 2 | 30.00 |
| -0.75 | -3 | 2 | -30.00 |
The position side determines the sign
The table assumes a long position: three ticks up give+15 or+30; three down give−15 or−30. A short position reverses the price-result sign. Taxes, financing and real execution are not modelled.
This is a cash change, not an account-return percentage: no capital is specified. It determines neither margin, liquidation nor a suitable quantity.
Rules cannot be transferred automatically
Another contract can use a different multiplier, currency, tick or quotation convention. Some products vary increments by price range or transaction type. A browser’s displayed unit is not an exchange specification. CME sources illustrate which fields to inspect; this example does not replace current product terms.
Check dimensions before comparing results
Record price step, point value, currency and quantity separately. Calculate per contract, then for the position, and only then add costs. Student Wyckoff studies price charts; it is neither a margin calculator nor a broker.
- Name the unit of every number.
- Separate the minimum price step from minimum quantity.
- Check the actual instrument’s specification.
Primary sources
Sources explain the mechanics and limitations; the editorial examples use invented numbers rather than market quotations.
Your next practical step
Student Wyckoff Pro helps you study closed bars and save your analysis. It does not execute trades; access and the Windows connection are explained in the guide.
Open the first-chart instructions ↗