Summary: This article gives you a straight answer about the minimum tick size for Nasdaq 100 futures, and then takes you through the kind of details (with steps, screenshots, and even a couple of detours) you actually encounter when trading or studying these contracts. Along the way, I’ll throw in stories from real trading, compare U.S. and international exchange rules, and point out where you can find official data, so you’re not just learning numbers—but the context that makes them matter.
Why This Matters: Getting Precise with Nasdaq 100 Futures Tick Size
If you’re looking to trade the Nasdaq 100 futures (often called the E-mini Nasdaq 100, symbol NQ), or you’re just curious about how fine price movements can get, you probably want more than just a number. You want to know: what’s the smallest price change, how does it affect orders, and—if you’re like me—what can go wrong if you get it wrong? Let’s break down the minimum tick size, show you where to see it live in a trading platform, and talk a bit about how this compares globally.
First, The Short, Concrete Answer (With Source)
The minimum tick size for Nasdaq 100 futures traded on the CME (Chicago Mercantile Exchange) is 0.25 index points. Each tick is worth $5.00 per contract. This is straight from the CME Group’s own contract specifications page: CME Nasdaq 100 Futures Specs.
So, if the NQ is trading at 15,000.00, the next possible price is 15,000.25, then 15,000.50, etc. No in-betweens. If you try to place an order at, say, 15,000.10, the system will round you up or down to the nearest valid tick.
Hands-On: Finding and Understanding the Tick Size in a Real Trading Platform
Now, I remember my first time placing an order—I thought I was being clever, trying to undercut the market by a few cents. The platform just kicked back a warning: “Invalid price increment.” Annoying at the time; funny in hindsight. Here’s what the process actually looks like, using Interactive Brokers (IBKR) as an example, but the steps are similar across platforms like Thinkorswim, NinjaTrader, or Tradestation.
Step 1: Pull Up the NQ Contract
You log in, search for “NQ”, or “Nasdaq 100 E-mini,” and select the nearest monthly contract (say, NQ 202406 for June 2024). Here’s what you’ll see in the order entry:
(Source: Interactive Brokers TWS Screenshots)
Step 2: Try to Place a “Weird” Order
I once tried to buy at 15,000.13. The system just wouldn’t let me. Pop-up: “Price must be a multiple of 0.25.” So, you can only buy/sell at increments like 15,000.00, 15,000.25, 15,000.50, etc. That’s the tick size in action.
Step 3: Confirm with the Official Exchange
If you want to double-check, the CME’s own contract specs always have the last word. Go to their site, look up “E-mini Nasdaq 100” and there it is: Minimum Price Fluctuation: 0.25 index points = $5.00 per contract. You can screenshot this for your records or just bookmark it.
Step 4: See How It Impacts Your P&L
Suppose you buy at 15,000.00 and sell at 15,000.50. That’s two ticks (0.50 points), so your profit is 2 x $5.00 = $10.00 (before fees). If you make a mistake and try to scalp for less than a tick, well, good luck—the system will block you.
Why Tick Size Matters More Than You Think (Expert Viewpoint)
Here’s where it gets interesting. I had a chat with a prop trader friend, Elena, who’s been scalping index futures for nearly a decade. Her take: “People obsess over direction, but if you don’t understand tick size, your order logic is broken. You think you’re front-running, but you’re actually just getting errors or worse—crossed spreads.” She pointed me to a CME Group educational article that breaks down the risks of ignoring tick size: Understanding Tick Sizes.
Also, the tick size acts as a “price floor”—no matter how volatile the market gets, it can’t move any smaller than that increment. This matters for algorithmic traders (I once botched a backtest assuming penny increments—results were way off).
How Does Nasdaq 100 Futures Tick Size Compare Globally?
Here’s where it gets tricky. The U.S. is pretty standardized, but other countries’ exchanges may have different rules—even for contracts tracking the same index family.
| Exchange / Country | Contract Name | Tick Size | Legal Basis | Regulator / Authority |
|---|---|---|---|---|
| CME (USA) | E-mini Nasdaq 100 | 0.25 index point ($5.00) | CME Rulebook | CFTC (Commodity Futures Trading Commission) |
| Eurex (Europe) | Mini DAX® Futures | 1.0 index point (€5.00) | Eurex Contract Specs | BaFin, ESMA |
| SGX (Singapore) | SGX Nifty 50 Index Futures | 0.5 index point (INR 50) | SGX Product Page | Monetary Authority of Singapore |
| JPX (Japan) | Nikkei 225 Mini | 5 index points (¥500) | JPX Specs | Japan Financial Services Agency |
So, even for “similar” index futures, tick size and contract terms are not universal. If you’re trading U.S.-listed Nasdaq 100, it’s 0.25 points, but if you jump to other regions (or even products like Micro E-mini Nasdaq 100, where 0.25 points = $0.50), you have to check again.
Case Example: Trading Mistake and Official Response
Let me share a quick story. I once coached a trader friend who, switching between S&P 500 and Nasdaq 100 futures, assumed the tick size was the same. He tried to set a stop-loss order “one tick below market”—but got rejected by the system. We checked the specs again, and sure enough, S&P E-mini (ES) has a 0.25 point tick, but the dollar value per tick is different. Small mistakes here can mean orders don’t execute—or worse, you enter at a worse price than intended.
To back this up with an official stance, the CFTC clearly states in its Core Principles and Other Requirements for DCMs (Part 38) that exchanges must clearly define tick sizes and enforce them in matching engines. So, no “off tick” orders get through.
Industry Expert Soundbite: Tick Size and International Trade Verification
Not a lot of people realize that different tick sizes actually reflect broader regulatory philosophies. Dr. Michael Li, a financial market structure analyst, notes in a recent Reuters interview: “Tick size isn’t just a market microstructure detail—it’s a regulatory tool. U.S. markets emphasize liquidity and tight spreads; Europe sometimes aims for stability over speed.” That’s why you get these little, but critical, differences.
Personal Reflections and a Few Cautionary Lessons
After years of trading, I’ve learned (sometimes the hard way) that the details you skip—like tick size—are always the ones that cost you money or make you look silly in front of your trading group. Double-check the specs, especially when moving between products or exchanges. Bookmark the official pages (CME, Eurex, etc.), and when in doubt, place a small “test” order to see what the broker allows.
One last tip: if you’re building trading bots, make sure your system references the exchange’s API for tick size, not some default value. I’ve seen more than one “brilliant” strategy fail in live trading just because of this oversight.
Conclusion: Key Takeaways and Next Steps
To wrap it up: the minimum tick size for Nasdaq 100 futures on CME is 0.25 index points ($5.00 per contract). This is enforced strictly by all major brokers and exchanges, and you can’t sidestep it. Different countries and exchanges have their own tick sizes, even for contracts tracking similar indexes—so always check the specs. Use the links above to verify, and if you’re ever unsure, run a test order or ask your broker’s support. The small stuff really is what separates the pros from the amateurs.
If you’re planning to trade internationally or automate your strategies, set aside some time to compare contract specs and regulatory guidance in each market. It’s tedious, but it’s better than the alternative!