WY-06-28 / 08
Multipliers, Minimum Ticks, Currencies, Costs, and Nonlinear Products
Decisions, Execution & Validation
Lesson / WY-06-28
Contract multiplier m converts quotation changes into profit/loss. A one-price-unit change produces m settlement-currency units of gross profit/loss per linear contract, or q×m for q contracts. Tick size specifies the permitted quotation increment; tick value is the monetary value of one tick. For a contract settled linearly in one settlement currency, tick value＝tick size×m. Check entry-to-stop ticks as |P−S|÷tick size; underlying risk is also ticks×tick value×q. With tick value＝tick size×m, fixed tick size, and identical inputs, the two calculations necessarily agree; their difference cannot test order-price validity. Check each submittable order price individually against venue price levels. If the formulas disagree, check tick value, tick size, multiplier, quantity, and currency consistency.
Course content is for learning and research only. It is not investment advice.
Read the Chapter ↗Timestamps
10 lessons · Chapter contents
01Analytical Bias, Trading Opportunity, and Entry Trigger↗02Tests, LPS/LPSY, Breakout Retests, and Trend Continuation↗03Early, Confirmed, and Retest Participation↗04Price Advantage, Information, and Potential Risk↗05Hypothesis Invalidation, Discretionary Exit, and Protective Stops↗06Market, Limit, and Stop Orders↗07Risk Budget, Unit Risk, and Position Sizing↗08Multipliers, Minimum Ticks, Currencies, Costs, and Nonlinear Products↗09Portfolio Correlation, Concentration, and Abnormal-Market Contingencies↗10A Complete Trading Plan↗Observe the market: start with context and place price within its structure.
Understand structure: compare supply and demand, and let evidence support or revise your hypothesis.
Form a view: define risk limits and know when to reassess.
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Relative Strength and Opportunity Screening
Point-and-Figure Charts and Price Target Estimation
