HG Tick Size, Tick Value, and Margin: The Numbers That Actually Matter
Copper futures (HG) hit harder than most traders expect. The contract looks small on the chart, but every tiny movement carries weight. If you don’t understand how each tick translates into real dollars, you’ll size wrong and get rolled over by normal copper behavior.
The Real Tick Size and What It Means
The smallest amount HG can move is half of one one-thousandth of a dollar. It doesn’t look like much on the chart, but each of those movements is worth real money.
- Tick size: 0.0005
- Value per tick: $12.50
That’s why copper feels “heavy.” Even a short burst of price action — the kind HG throws out during U.S. data releases or inventory surprises — can hit several hundred dollars before you can react.
How Copper’s Price Translates to Cash
HG’s contract multiplier is straightforward: every point of movement represents five thousand dollars. You don’t need decimal tables or robotic math tricks to understand it — think of it in terms of chunks:
- A small push of a few ticks = grocery money
- A clean intraday swing = car payment
- A full trend leg = rent
It adds up fast. Copper doesn’t need massive candles to create meaningful P&L swings.
What Typical HG Moves Actually Look Like
Here’s how HG behaves in the real world:
- A gentle pullback can cover 10–20 ticks without breaking its trend
- A normal intraday impulse run often hits 30–50 ticks
- A strong breakout leg routinely stretches above 80 ticks
Each of those ticks is $12.50, so even “normal” copper movement puts pressure on both your sizing and your stop placement. This is why understanding volatility — covered deeply in the HG volatility guide — isn’t optional.
Initial Margin and Maintenance Margin (The Real Danger)
Exchange margin for HG changes depending on volatility, but the structure stays the same: you need enough capital to open the position, and then you need slightly less to maintain it. The catch is simple — copper margins get hiked fast when the market gets jumpy.
When inventories tighten or macro headlines hit, the exchange doesn’t babysit traders. It raises margin so undercapitalized positions get flushed out. Copper is one of the last places you want to be under-margined.
Day-Trading Margin Reality
Brokers and prop firms often advertise “reduced intraday margin,” but that number is meaningless if you don’t understand the risk behind it. Copper doesn’t care that you’re using a discount prop account — if it wants to move a dollar’s worth of ticks in a minute, it will.
- Lower intraday margins help you get in
- They don’t help you survive a spike against you
- Firms can tighten margin instantly and force liquidations
If your whole plan relies on low intraday margin, you don’t have a plan — you have a countdown timer.
Final Takeaways
Copper futures don’t forgive sloppy math. One tick is $12.50, swings build quickly, and margins widen without warning. Understand the size of what you’re trading before you even think about entries, or copper will teach you the lesson the expensive way.