Futures calculator (tick value and profit)

Ticks, points and contract specs

A futures contract is a standardised agreement to buy or sell a set quantity of something, an index, a barrel of oil, an ounce of gold, a government bond, at a price agreed today for a date in the future. The exchange that lists it, for the contracts here CME Group, fixes the quantity, and with it how much money each price move is worth.

Two numbers from the contract spec are all you need. The tick size is the smallest amount the price can move. The tick value is what one tick is worth for one contract. Divide the tick value by the tick size and you get the value of a full point, which is how traders often talk about index futures ("ES is $50 a point").

Specs are set by the exchange and occasionally change, so check the current spec with CME Group or your broker before relying on a figure. For anything not listed, including contracts on other exchanges, choose Custom and enter the tick size and value yourself.

The formula

Ticks = (exit − entry) ÷ tick size (for a short, entry − exit)
Gross P/L = ticks × tick value × contracts
Net P/L = gross P/L − commission per side × 2 × contracts

The direction only decides which way round the subtraction goes. A long profits when the exit is above the entry, a short when it is below. Unlike shares, there is nothing to borrow for a short: selling a future first is as routine as buying one.

The calculator also shows value per point, which is the quickest way to size a stop. If your stop on NQ is 30 points away, one contract risks 30 × $20 = $600, and MNQ risks $60. Turn that around and you can see how many contracts a given risk budget allows: with $300 to risk on a 30-point NQ stop, a full contract is too large and five MNQ contracts fit exactly.

It reports commission in ticks for the same reason. A strategy that targets four ticks on ES and pays 0.4 of a tick in round-turn commission gives up a tenth of every winner to costs. The same target on MNQ, at $5 round turn, needs ten ticks just to cover commission, so the trade cannot work at all. Short-term traders should compare contracts on this basis before choosing one.

If the price difference is not a whole number of ticks, the calculator still computes the result and flags it, because it usually means a typo in one of the prices. Treasury futures are quoted in 32nds of a point (110'16 means 110 and 16/32), so enter them as decimals: 110'16 is 110.5.

Worked examples

Hypothetical trade one: you buy 1 ES contract at 5,000.00 and sell it at 5,010.00, paying $2.50 commission per side.

1. Points: 5,010 − 5,000 = 10 points.
2. Ticks: 10 ÷ 0.25 = 40 ticks.
3. Gross P/L: 40 × $12.50 = $500.
4. Commission: $2.50 × 2 = $5, which is 0.4 of a tick.
5. Net P/L: $500 − $5 = $495.

The same 10 points on MES would make $50 gross, and on the same commission $45 net, which shows why commission weighs ten times heavier on the micros.

Hypothetical trade two: you sell 2 ZN contracts at 110.5 (110'16) and buy them back at 110.25 (110'08), with $1 per side. The price fell 0.25 points, which is 16 ticks of 1/64. Each contract makes 16 × $15.625 = $250, so $500 gross for two. Commission is $1 × 2 × 2 = $4, leaving $496 net.

Both results match what the calculator above returns for the same inputs.

Common mistakes

Mixing up the micro and the full contract. MES and ES move tick for tick, but each MES tick is worth a tenth as much. Entering a position on the wrong one means ten times more, or less, at stake than you planned.

Confusing points with ticks. On ES a point is four ticks; on CL a "point" of $1 is a hundred ticks. Write stops and targets in ticks or in money, never in an undefined "points".

Forgetting that leverage cuts both ways. A single ES contract controls 50 times the index level, around $250,000 at 5,000, for a margin deposit that is a small fraction of that. A 1% move against you is about $2,500 per contract. Work out the money at risk from your stop in ticks before entering, the same way the position size calculator does for forex, and keep it within the limit set in your risk plan.

Ignoring the full cost. The commission figure should include exchange, clearing and regulatory fees if your broker lists them separately. Slippage on fast markets, especially around data releases, adds to the cost and is not in any calculator.

Holding through expiry by accident. Futures expire. Index futures settle in cash, but physically delivered contracts such as crude oil require you to close or roll before the last trading day. The guide to contango and backwardation explains what rolling costs.

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