PRAETIR / Markets

Euro futures 6E and the correct tick value

Euro futures are quoted in USD per euro. For 6E, tick value and journal accounting follow the futures contract rather than a generic spot-forex pip convention.

Use the 6E specification

The euro/U.S. dollar future represents 125,000 euros. For ordinary outright transactions on CME Globex, the minimum price move is USD 0.00005 per euro, equivalent to USD 6.25 per contract. Special spread or other transaction types can use different increments.

Calculate eight ticks correctly

A synthetic 6E long from 1.10000 to 1.10040 gains 0.00040. That is eight ticks and USD 50 in gross profit for one contract. With assumed round-trip costs of USD 5, USD 45 remains net.

Processing prices with only four decimal places can lose individual half-pip increments. Preserve the precision required by the tick size and verify decimal separators in CSV data.

Distinguish instrument and account currency

The example’s result is in USD. If your account report is in euros, record the conversion rate and its timing separately. Do not add USD and EUR results without a common valuation basis.

Keep the month and events in the review

Record the full futures code, session and known event times. Reconcile against the traded month and check delivery and broker deadlines for held positions. The name EUR/USD alone does not adequately distinguish futures from spot products.

CME contract specifications · USD
ContractPoint valueTick sizeTick value
6E125,0000.000056.25

Sources and methodology

Sources explain concepts or the respective provider’s product descriptions. Worked examples are original and synthetic. Verify current contract specifications before use.

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