6E Tick Size, Tick Value and Margin Requirements Explained
If you trade Euro FX futures and don’t know the exact 6E tick size, tick value, and margin requirements, you’re guessing with real money. This page strips the contract down to the numbers so you know exactly what each move in 6E costs or pays you.
Why 6E Tick Size and Tick Value Matter
6E tick size and tick value define the minimum price move and how many dollars that move is worth. If you don’t respect those numbers, your position sizing is nonsense and your risk management is fake.
- Tick size = smallest price increment 6E can move.
- Tick value = cash value of one tick.
- Margin = capital your broker/exchange holds to let you open the trade.
This article builds on the big-picture view from What Moves Euro FX Futures (6E)? and goes straight into contract specs and risk.
Core 6E Contract Specs
Here are the key numbers for the standard Euro FX futures contract (6E):
| Parameter | Value |
|---|---|
| Underlying | Euro vs U.S. Dollar |
| Contract size | 125,000 euros |
| Price quotation | USD per euro (e.g., 1.1050) |
| Tick size | 0.00005 |
| Tick value | $6.25 per tick |
Commit these numbers to memory. If someone asks you, “What’s a tick in 6E?” you should answer: “Half a pip, worth $6.25 per contract.”
How 6E Tick Size Translates into Dollars
6E tick size is 0.00005. That means every time price moves by 0.00005, the contract gains or loses one tick. The math is simple:
- 1 tick = 0.00005
- 1 pip = 0.00010 = 2 ticks
- 1 pip move = 2 × $6.25 = $12.50 per contract
If 6E moves from 1.10000 to 1.10100, that’s a 10 pip move = 20 ticks = $125 per contract. There’s nothing “mysterious” about it; it’s just multiplication.
Example: Real 6E Trade and P&L
Say you go long 1 contract of 6E at 1.09500 and exit at 1.09825.
| Item | Value |
|---|---|
| Entry | 1.09500 |
| Exit | 1.09825 |
| Price difference | 0.00325 |
| Pips | 32.5 pips |
| Ticks | 65 ticks |
| P&L | 65 × $6.25 = $406.25 before fees |
That’s how 6E tick size and tick value turn into actual cash. No indicators, no guessing—just math.
Margin Requirements on 6E
Margin is the capital you must post to open a 6E position. There are three main concepts you need to separate in your head:
- Exchange margin – baseline required by the clearinghouse.
- Broker margin – often higher than the exchange, broker-controlled.
- Day-trade / intraday margin – reduced margin for intraday trades, also broker-controlled.
Your broker decides what you actually see in your platform. One broker might let you trade 6E intraday with a small margin requirement, another might be much stricter. Either way, just because the margin is low doesn’t mean the risk is low.
How Margin Interacts with 6E Tick Value
Here’s where traders screw up: they look at the intraday margin and ignore how fast 6E can move in ticks. Example:
- Tick value: $6.25
- Reasonable stop: 20 ticks
- Risk per contract: 20 × $6.25 = $125
If you only have $500 in the account and you’re risking $125 on one trade, you’re risking 25% of your account on a single idea. That’s not “aggressive”; that’s suicidal.
Position Sizing with 6E Tick Value
To size your trades correctly, you reverse the process using 6E tick value:
- Decide how much you’re willing to risk per trade (in dollars).
- Define your stop in ticks based on structure, not feelings.
- Use this simple formula:
Contracts = (Dollar risk per trade) ÷ (Tick risk × $6.25)
Example: you want to risk $100 per trade, and your stop is 16 ticks.
- Tick risk × tick value = 16 × $6.25 = $100
- You can trade exactly 1 contract to stay inside your risk limit.
This is how serious traders look at 6E tick size and tick value. They don’t say “it feels okay.” They do the math and size accordingly.
Comparing Standard 6E with Micro Euro FX
When you’re starting out, the standard 6E contract can be too big. In that case, you look at the micro version of Euro FX futures. I break the differences down in detail in Micro Euro FX vs Standard 6E, but the idea is simple: smaller contract size, smaller tick value, easier to size safely.
Final Thoughts on 6E Tick Size, Tick Value and Margin
6E tick size, tick value, and margin requirements are not “fine print.” They are the skeleton of your risk. If you ignore them, you’re gambling. If you learn them, you can line up your entries from what moves Euro FX futures with precise dollar risk per trade and treat this like a business instead of a hobby.