NQ Futures Tick Value: Full Breakdown for Traders
Every futures trader must understand the tick value of their instrument. For NQ futures, tick size and value directly affect your profit and loss calculations. In this post, we’ll explain what a tick is, its value in both standard and micro contracts, and how it helps you manage your trades.
What Is a Tick?
A tick is the smallest possible price movement in a futures contract. Each futures market has a defined tick size and a monetary value assigned to that tick.
Tick Size and Tick Value for NQ Futures
- Minimum Tick Size: 0.25 index points
- Tick Value (Standard NQ): $5 per tick
- Tick Value (Micro NQ – MNQ): $0.50 per tick
This means each 1-point move (4 ticks) in NQ equals:
- $20 for standard NQ
- $2 for MNQ
Contract Comparison: NQ vs MNQ
| Contract Type | Tick Size | Tick Value | 1 Point Value |
|---|---|---|---|
| NQ | 0.25 | $5 | $20 |
| MNQ | 0.25 | $0.50 | $2 |
Both contracts move in the same increments, but the monetary impact is scaled down in MNQ, making it ideal for small accounts.
How Tick Value Impacts Your Trade
Let’s say the NQ futures price moves from 15,000 to 15,005.
- Total Move = 5 points
- Ticks = 5 × 4 = 20 ticks
- Profit = 20 × $5 = $100 for one NQ contract
- For MNQ, it would be 20 × $0.50 = $10
Understanding this helps you plan your risk per trade based on your account size.
Why Tick Value Matters
- Helps in calculating stop-loss and take-profit levels
- Essential for risk management
- Guides position sizing and trade planning
- Useful for backtesting and strategy development
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FAQs
1. What is the tick size of NQ futures?
The tick size is 0.25 index points.
2. How much is one tick worth in standard NQ?
One tick is worth $5.
3. What is the tick value in Micro NQ (MNQ)?
Each tick in MNQ is worth $0.50.
4. How many ticks are in 1 index point?
There are 4 ticks in every 1 point move.
5. Why should traders care about tick value?
Tick value directly impacts profit/loss, risk management, and trade sizing.
