Tick Size and Tick Value Explained 2026: A CFD Trader’s Complete Pricing Increment Guide

Last reviewed: 10 September 2026 · Reading time: ~8 minutes

Every price movement on your chart is measured in ticks. But “tick” is a broker-defined unit, not a universal one — and the difference between tick size and tick value is one of the most common sources of confusion (and mis-sized positions) among new CFD traders. This guide explains both, walks through product-by-product examples, and shows you how to use tick value to calculate position size on UZFX without a spreadsheet.

Research Note

Tick size and pip conventions below reflect common retail broker practice in 2026, including the conventions used by UZFX across forex, metals, indices, energy, crypto and equities. Confirm the current specifications of the specific account you open in your broker’s product documentation and cross-check regulated-entity status on ASIC Connect.

Tick Size vs Tick Value: The Definitions

Tick size is the smallest price increment the instrument moves by on your broker’s platform. It is a property of the instrument and the broker. On a forex major like EUR/USD quoted to five decimal places, the tick size is 0.0001. On gold quoted to two decimal places, the tick size is 0.01. On a stock CFD, the tick size is typically 0.01.

Tick value is the profit or loss in your account currency for one tick of movement, at a specific position size. It is a property of the position you are holding and the instrument’s contract specifications.

The distinction matters because tick size and tick value scale differently. Tick size is fixed by the broker; tick value scales linearly with position size. Two traders on the same platform can have completely different tick values on the same instrument simply by choosing different lot sizes.

The Pip vs Pipette vs Tick Confusion

“Tick,” “pip” and “pipette” are often used interchangeably, but they are not the same:

  • Tick = the smallest price unit the platform displays. For EUR/USD at five decimal places, tick = 0.0001 = the fifth decimal place.
  • Pip = the 100th of a percent move in the quoted currency. On EUR/USD, 1 pip = 0.0001. On JPY pairs, 1 pip = 0.01 (the second decimal place).
  • Pipette = one-tenth of a pip. On EUR/USD, one pipette = 0.00001. Brokers that quote to five decimals are effectively letting you measure at pipette resolution.

If your broker displays tick = 0.00001, then one tick is one pipette. If tick = 0.0001, one tick is one pip. The label on the chart is the tick; the term “pip” is a legacy convention that predates sub-pip pricing.

Tick Size and Tick Value by Product Class

The tick size and tick value you should expect to see on a modern CFD broker:

Forex majors (EUR/USD, GBP/USD, USD/JPY, AUD/USD, USD/CAD, USD/CHF, NZD/USD)

  • Tick size: 0.0001 for non-JPY pairs, 0.01 for JPY pairs.
  • Tick value (standard lot = 100,000 units): roughly 10 USD per pip on the quote currency. For non-USD quote currencies the actual P&L is converted to account currency at the spot rate.
  • Micro lot (0.01 = 1,000 units): roughly 0.10 USD per pip.
  • Mini lot (0.10 = 10,000 units): roughly 1 USD per pip.
  • Standard lot (1.00 = 100,000 units): roughly 10 USD per pip.

Forex crosses (EUR/GBP, GBP/JPY, EUR/JPY, etc.)

  • Tick size: Same as majors (0.0001 non-JPY, 0.01 JPY).
  • Tick value: Slightly different because P&L is converted twice — first to the quote currency, then to the account currency. Expect 8 to 12 USD per pip on a standard lot of EUR/GBP.

Precious metals (XAU/USD, XAG/USD)

  • Gold (XAU/USD): Standard contract = 100 oz. Tick size 0.01 or 0.1 depending on broker. Tick value on a standard contract is 1 USD per 0.01 move (or 10 USD per 0.1 move).
  • Silver (XAG/USD): Standard contract = 5,000 oz. Tick size 0.001 or 0.01. Tick value on a standard contract is 5 USD per 0.001 move.
  • Micro variants: 0.01 lot of gold = 1 oz, tick value 0.01 USD per 0.01 move.

Energy (WTI Crude, Brent, Natural Gas)

  • WTI Crude: Standard contract = 1,000 barrels. Tick size 0.01. Tick value 10 USD per 0.01 move.
  • Brent Crude: Same structure as WTI.
  • Natural Gas (NG): Standard contract = 10,000 MMBtu. Tick size 0.001. Tick value 10 USD per 0.001 move.

Indices (US30, US500, US100, UK100, GER30, JP225, etc.)

  • Tick size: 0.1 to 1.0 depending on index and broker.
  • Tick value (1 contract): Typically 1 USD per 1.0 point move on major indexes. Fractional contracts are available on most brokers.
  • Index points are not fixed to a single number — the tick value is calculated as (point value) × (contract multiplier) ÷ (price). Confirm per product.

Crypto (BTC/USD, ETH/USD, SOL/USD, XRP/USD, etc.)

  • Tick size: Typically 0.01 or 0.001 depending on price level.
  • Tick value: Same principle as metals — position size in coins × tick size = tick value. One BTC/USD contract moving 0.01 produces 0.01 USD of P&L. A 0.1 BTC position moving 0.01 produces 0.001 USD of P&L. Crypto tick values are typically much smaller per unit than forex tick values on equivalent notional exposure because the underlying price is high.

Stock CFDs (AAPL, MSFT, TSLA, etc.)

  • Tick size: 0.01 or 0.005 per share.
  • Tick value: One share position moving 0.01 = 0.01 USD of P&L. Fractional shares are commonly available.

How Tick Value Scales With Position Size

Tick value scales linearly with position size. On UZFX’s standard account, using EUR/USD as the reference:

Position sizeUnitsApprox. tick value (USD per 0.0001 move)
Micro (0.01 lot)1,0000.10
0.05 lot5,0000.50
Mini (0.10 lot)10,0001.00
0.50 lot50,0005.00
Standard (1.00 lot)100,00010.00
2.00 lot200,00020.00

The linear relationship means you can calculate any fractional lot size by multiplying the standard-lot tick value by the fractional lot size. A 0.37 lot of EUR/USD has a tick value of about 3.7 USD per pip. This is the arithmetic that turns a “1% risk” rule into an actual lot size.

Using Tick Value for Position Sizing

The most practical use of tick value is in the position-sizing formula:

Position Size (lots) = (Account Equity × Risk %) ÷ (Tick Value per Lot × Ticks to Stop Loss)

Worked example — EUR/USD on UZFX standard account:

  • Account: $10,000
  • Risk: 1% = $100
  • Entry: 1.08500
  • Stop loss: 1.08000
  • Distance: 0.00500 = 50 pips = 50 ticks (at tick size 0.0001)
  • Tick value per standard lot: 10 USD per tick
  • Tick value at risk per standard lot: 10 × 50 = 500 USD
  • Position size: 100 ÷ 500 = 0.20 lot

At 0.20 lot, one pip move equals 2 USD. A 50-pip adverse move produces a 100 USD loss — exactly the 1% risk target.

The formula works identically for gold, indices, crypto and stocks — the only variable that changes is the tick value per contract.

Common Mistakes in Tick Value Calculation

Mistake 1: Confusing micro and mini lots. A micro lot is 0.01 of a standard contract. A mini lot is 0.10. Traders frequently treat them as the same, resulting in a 10× position-sizing error.

Mistake 2: Ignoring the quote currency. On non-USD-quoted pairs like EUR/GBP, the raw tick value is denominated in GBP. Your actual P&L is converted to USD (or your account currency) at the spot rate, which can vary materially. Use broker-provided tick value tables rather than a manual calculation when in doubt.

Mistake 3: Assuming tick value is fixed across instruments. A standard lot of gold (100 oz) and a standard lot of silver (5,000 oz) have very different tick values. The silver contract is roughly 50× larger on notional exposure.

Mistake 4: Forgetting the fractional “pipette.” On a broker that quotes EUR/USD to five decimals, each displayed pipette is 0.1 of a traditional pip. Reading “spread = 0.3 pips” from a chart with pipette resolution means the actual spread is 3 pipettes, not 3 pips.

Mistake 5: Using gross tick value for a hedged position. If you are holding a long and a short position on the same pair to hedge, your effective tick value doubles because both legs move. This is not a mistake in the calculation — it is a strategic choice that must be understood.

Reading the Chart: Practical Tips

  • Check your broker’s product spec sheet for the exact tick size of every instrument you plan to trade. UZFX publishes this in-platform next to each symbol.
  • Do not trust legacy pip calculators that assume a 0.0001 tick on all pairs. The 4th decimal place on JPY pairs is the tick; on other pairs it is a pipette.
  • Use broker-supplied tick value tables for gold, silver and index CFDs. These instruments have contract specifications that vary significantly across brokers.
  • Test on demo first. Open a 0.01 lot on every major instrument you intend to trade and confirm the tick value the platform shows matches your expectation.
  • Log tick size and tick value in your journal. If the broker changes the contract spec or the tick convention, your historical P&L numbers become harder to interpret.

Fractional Pips and Micro Accounts

Because UZFX supports micro-lot sizing down to 0.01 lot, fractional pips become practical. On a $100 account with 1:200 effective leverage and a 50-pip stop on EUR/USD:

  • 0.01 lot = 1,000 units
  • Tick value per pip = 0.10 USD
  • Risk at 50-pip stop = 5 USD = 5% of account

That is a manageable risk for a beginner. A 1% risk target at 50-pip stops on a $100 account is 1 USD — roughly 0.001 lot, which some brokers round up. This is why low-minimum-deposit brokers need to be careful about lot size granularity.

UZFX Pricing and Tick Conventions

UZFX quotes major forex pairs to five decimal places, giving tick size of 0.0001 (traditional pip) and sub-pip pipette resolution of 0.00001. JPY pairs use the standard 0.01 tick convention. Metals, indices, energy, crypto and equities follow the industry-standard contract specifications detailed above.

The full instrument list is available in-platform on UZFX’s Web Terminal, H5, iOS, Android, Windows and macOS applications. Because UZFX does not offer MT4 or MT5, there is no legacy MT4 pip convention to work around — the pricing shown is the pricing executed.

Recommended: confirm the specific tick size for the symbol you plan to trade before opening a position. Contract specifications can vary by account entity and regional entity. The UZFX product catalogue is the authoritative source.

Frequently Asked Questions

What is the difference between tick size and tick value?

Tick size is the smallest price increment the instrument moves by on your broker’s platform, and it is fixed. Tick value is the profit or loss in your account currency for one tick of move at a specific position size, and it scales linearly with your position size. Tick size is a property of the instrument; tick value is a property of the position.

What is the tick size and tick value on major CFD instruments?

Forex majors (EUR/USD, etc.): tick size 0.0001, tick value ~10 USD per pip on a standard lot. Gold (XAU/USD): tick size 0.01 or 0.1, tick value 1 USD per 0.01 move on a standard contract. Indices: tick size 0.1 to 1.0, tick value ~1 USD per point per contract. Stock CFDs: tick size 0.01 per share. Crypto CFDs: tick size typically 0.01 or 0.001, tick value per coin traded.

How is tick size different from pipette?

A pip is 0.0001 on non-JPY forex pairs — the traditional unit. A pipette is 0.00001 — one-tenth of a pip — used when brokers quote to five decimal places. On a five-decimal broker like UZFX, the tick size on EUR/USD is 0.0001 (pip) but the platform displays pipette resolution, so a “3-pip” spread shown visually is 30 pipettes.

What is a fractional pip on a micro account at UZFX?

On UZFX standard account, a micro-lot of EUR/USD (0.01 lot = 1,000 units) produces roughly 0.10 USD per pip. This is the fractional pip value that lets a 100-dollar account risk 1% per trade with a 50-pip stop. Fractional pips are the reason low-minimum-deposit brokers can support beginner position sizing without 0.001-lot granularity.

How do I calculate position size using tick value?

Position Size (lots) = (Account Equity × Risk %) ÷ (Tick Value per Lot × Ticks to Stop Loss). Example: on a $10,000 account risking 1% ($100) with a 50-pip stop on EUR/USD at 10 USD per pip per standard lot, the position size is 0.20 lot. The formula works for gold, indices, crypto and stocks with the appropriate tick value per contract.

Final Verdict

Tick size and tick value are not advanced concepts — they are the pricing DNA of every CFD platform. Mastering them turns the “1% risk rule” from a slogan into a formula, gives you the ability to compare position risk across product classes, and eliminates the most common source of beginner drawdowns: mis-sized positions from a pip-tick confusion.

The three rules to internalise:

  1. Tick size is fixed by broker and instrument. Confirm it in the product spec.
  2. Tick value scales linearly with position size. Use it to calculate lot size.
  3. Pip, pipette and tick are not synonyms. On UZFX’s five-decimal forex pricing, a pip equals one tick and a pipette equals one-tenth of a tick.

Master these three facts and the arithmetic of position sizing becomes a two-line calculation rather than a mental puzzle.

For the current pricing, tick size and contract specifications on UZFX, visit the UZFX official website and confirm each symbol in-platform before trading.

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Risk Warning

Trading CFDs on margin carries a high level of risk and may not be suitable for all investors. Past performance is not indicative of future results. Leverage can work against you as well as for you. Before engaging in trading, you should carefully consider your investment objectives, level of experience and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment. This article is for informational and educational purposes only and does not constitute investment advice.

Recommended Broker: Visit UZFX Official Website