ES Tick Size, Tick Value, and Margin Explained
The ES (E-mini S&P 500) contract moves in fixed increments, and if you don’t know the tick size, tick value, and margin requirements, you’re basically trading blind. This breakdown strips it down so you know exactly what each move in ES costs and how much capital you actually need to keep your account alive.
What the ES Tick Size Really Means
ES trades in 0.25-point increments. That 0.25 is the tick size. Nothing complicated. If ES is at 5300.00, the next valid prices are 5300.25, 5300.50, and 5300.75. If you're coming from forex or stocks, this rigid price ladder feels weird at first, but it’s exactly what makes ES predictable for risk calculations.
ES Tick Value: What Each Tick Costs You
Every ES tick is worth $12.50. One full point is four ticks, so a 1-point move is $50. Simple table:
| Move | Ticks | P/L |
|---|---|---|
| 1 tick | 1 | $12.50 |
| 4 ticks (1 point) | 4 | $50 |
| 10 points | 40 | $500 |
This is why ES can shred weak traders. A tiny five-point pullback against you is $250 gone. If that makes your stomach clench, look at the MES contract, which is 1/10 the size. I already covered this in ES vs MES.
Margin Requirements: Intraday vs Overnight
Brokers play games with intraday margin. The exchange doesn’t. CME sets
Here’s the truth: low intraday margin is bait. ES volatility doesn’t care what deal your broker gives you. If you want to survive, size positions based on drawdown tolerance, not broker marketing. I covered sizing rules in another guide: ES Position Sizing.
Why Understanding Tick Mechanics Keeps You Alive
ES is liquid and clean, but the tick structure forces discipline. You aren’t dealing with random price increments—everything is quantized in $12.50 chunks. Once you know that, you stop making “hope and pray” trades and start making decisions based on actual math.