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Minimum Price Changes
Exchanges establish the minimum amount that the price can fluctuate
upward or downward. This is known as the "tick" For example,
each tick for grain is 0.25 cents per bushel. On a 5,000 bushel
futures contract, that's $12.50. On a gold futures contract, the
tick is 10 cents per ounce, which on a 100 ounce contract is $10.
You'll want to familiarize yourself with the minimum price fluctuation--the
tick size--for whatever futures contracts you plan to trade. And,
of course, you'll need to know how a price change of any given amount
will affect the value of the contract.
Past performance is not necessarily indicative of future results.
The risk of loss exists in futures and options trading.
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