Ticks, Points & Handles Explained
A tick is the smallest amount a futures price can move. A point (traders often say handle) is one full unit of the index. Knowing what each is worth in dollars is essential — it's how you know what a trade is actually making or losing.
What a tick is worth
- ES (E-mini S&P): 1 tick = 0.25 pts = $12.50; 1 point = $50.
- NQ (E-mini Nasdaq): 1 tick = 0.25 pts = $5.00; 1 point = $20.
- MES (Micro S&P): 1 tick = $1.25; 1 point = $5.
- MNQ (Micro Nasdaq): 1 tick = $0.50; 1 point = $2.
Points and handles
A “10-point move on NQ” means the index moved 10 full points — worth $200 per contract. Traders say “handle” to mean the same thing. Your profit target and stop are usually measured in points or ticks.
Why it matters
If you don't know tick value, you can't size risk. Two ticks of stop on NQ is $10; on ES it's $25; on a full contract with 20 points of stop it's real money. Position sizing starts here.
I break this down live on NQ and ES every session — so you learn the timing, not just the theory.
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What is the difference between a tick and a point?
A point is a full index unit; a tick is the smallest fraction price moves in (0.25 for NQ/ES). Four ticks make one point on those contracts.
What is a handle in trading?
“Handle” is just slang for a whole point. “NQ dropped three handles” means it fell three full points.
Educational content only, not financial advice. Trading futures carries substantial risk of loss.