Tick value
The amount of money a one-tick move in the contract adds to or takes from the account.
Formula
\text{Result} = \text{Ticks moved} \times \text{Tick value} \times \text{Contracts}Tick value is set by the contract specification. Where the contract is tied to a foreign currency, the exchange recalculates it at every clearing.
How to read the number
This is where a move on the chart turns into money on the account; a contract point on its own carries no monetary meaning.
When the metric lies
On contracts linked to a foreign currency the tick value floats with the exchange rate. The cost of holding the position changes although the holder has traded nothing.
Also known as: value of a tick, point value