TL;DR: In futures trading, your profit or loss is calculated as (Tick Value × Number of Ticks Moved) × Number of Contracts. The more ticks the price moves in your favor and the more contracts you trade, the greater your profit or loss potential.
In FundedNext Futures calculating Profit and Loss (PnL) is one of the most important skills. Because futures contracts move in fixed tick sizes, every price change directly affects your balance. Understanding how tick size, tick value, and the number of contracts work together lets you accurately measure risk and Performance Reward — so you can plan trades with confidence and avoid surprises.
Understanding the key concepts
Before calculating profit or loss, you'll need to understand these core terms:
Tick Size: The smallest possible price movement allowed for a futures contract. It differs across contracts.
Tick Value: The monetary amount gained or lost when the price moves by one tick.
Number of Ticks: The total movement in ticks between your entry and exit price.
Number of Contracts: How many contracts you're trading. More contracts amplify both profits and losses.
Once these basics are clear, you can calculate PnL manually or use a futures profit calculator.
What is a tick in futures trading?
A tick is the minimum price change for a futures contract. Prices move in fixed steps, with no smaller increments possible.
Example: If the tick size is 0.25 points, the price moves in increments of 0.25 (6000.00 → 6000.25 → 6000.50). Prices will not change by smaller amounts such as 6000.10.
Each tick has a tick value, showing the money gained or lost per tick, per contract.
For example, the E-mini S&P 500 futures contract has a tick value of $12.50.
How to calculate profit and loss using ticks
Formula:
Profit/Loss = (Tick Value × Number of Ticks Moved) × Number of Contracts
Example 1 — One contract
You trade 1 contract of the E-mini S&P 500 futures, and the price moves 5 ticks in your favor (6000.00 → 6001.25).
Tick Size: 0.25 points
Tick Value: $12.50
Number of Ticks: 5
Calculation:
5 ticks × $12.50 = $62.50 profit
Example 2 — Multiple contracts
You trade 3 contracts of the E-mini S&P 500 futures, and the price moves 5 ticks in your favor.
Tick Size: 0.25 points
Tick Value: $12.50
Number of Ticks: 5
Contracts Traded: 3
Calculation:
(5 ticks × $12.50) × 3 contracts = $62.50 × 3 = $187.50 profit
Key points to remember
A tick is the smallest price movement in a futures contract.
Tick size is how much the price can move in one step; tick value is how much money you make or lose per tick.
The more ticks the price moves in your favor, the higher your profit.
The number of contracts multiplies your profit or loss.
If the price moves against you, the same calculation applies to your loss.
🔗 To know more about the offered instruments, see: Which symbols/instruments can I trade on FundedNext Futures?