How Much Do You Earn When a Crypto Futures Contract Rises by One Tick?

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Crypto derivatives trading has become increasingly popular, especially as more investors seek leveraged exposure to digital assets without owning them outright. A common question among traders—especially those new to the space—is: how much do you earn when a crypto futures contract rises by one tick? The answer isn't universal; it depends on several key factors including contract size, tick size, and the underlying asset’s price movement. In this guide, we’ll break down the calculation methods for different types of crypto contracts and help you understand how profits are determined per price increment.

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Understanding Crypto Derivatives Contracts

Before diving into calculations, it's important to understand what crypto derivatives contracts are. These financial instruments allow traders to speculate on the future price of cryptocurrencies like Bitcoin or Ethereum without actually holding the asset. The most common types include:

All of these enable leveraged trading, meaning you can control large positions with relatively small capital. However, leverage amplifies both gains and losses—making risk management crucial.

Each contract has specific terms defined by the exchange, including contract size, tick size, and settlement method. These directly affect how much profit or loss occurs when the market moves just one increment.

How Much Profit Per Tick? Key Factors

The amount earned when a crypto contract rises by one tick depends on two main variables:

  1. Contract Size – How much of the underlying asset each contract represents (e.g., 1 BTC, 10 ETH).
  2. Tick Size – The minimum price movement allowed for that contract (e.g., $0.01, $1).

Formula:

Profit per tick = Contract Size × Tick Size

Let’s explore this with real-world examples across different contract types.

1. Futures Contracts: Calculating Profit per Tick

Futures contracts obligate the buyer to purchase (or seller to deliver) a set amount of cryptocurrency at a predetermined price on a future date. Most crypto futures are cash-settled, meaning no actual delivery occurs.

Example: Bitcoin Futures

Using the formula:

1 BTC × $0.01 = **$0.01 profit per tick**

So, if the price increases by just one tick ($0.01), each contract earns $0.01.

Now consider a larger tick size:

1 BTC × $1 = **$1 profit per tick**

If Bitcoin’s price rises from $30,000 to $30,001, you earn $1 per contract.

This shows how tick size dramatically impacts profitability—even small movements can generate meaningful returns when trading multiple contracts.

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2. Contracts for Difference (CFDs): Similar Structure, Same Math

CFDs function similarly to futures in terms of profit calculation. You profit from the difference between the opening and closing price of a position.

Example: Ethereum CFD

10 ETH × $0.10 = **$1 profit per tick**

If Ethereum moves up by one tick ($0.10), your position gains $1 per contract.

Like futures, CFDs offer high leverage and are popular among short-term traders looking to capitalize on volatility.

3. Options Contracts: A Different Approach

While futures and CFDs have linear payoff structures, options are more complex. With options, you pay a premium for the right (not obligation) to buy or sell crypto at a set price before expiration.

Profit isn’t directly tied to “ticks” in the same way—it depends on:

Therefore, while tick-based calculations apply less directly here, understanding delta helps estimate sensitivity to price moves.

For instance, an option with a delta of 0.5 will increase in value by approximately $0.50 for every $1 rise in the underlying asset.

Frequently Asked Questions (FAQ)

Q: What is a "tick" in crypto trading?
A: A tick is the smallest possible price movement for a given contract. For example, if the tick size is $0.50, the price can only move in increments of $0.50.

Q: Does leverage affect how much I earn per tick?
A: Leverage doesn’t change the base value per tick—it only multiplies your position size. So, higher leverage means greater profit (or loss) per tick, but the tick value itself remains unchanged.

Q: Are tick sizes the same across all exchanges?
A: No. Different platforms may use different tick sizes for similar contracts. Always check the contract specifications before trading.

Q: Can I trade fractional contracts?
A: Some platforms allow fractional positions, but most standard futures are traded in whole units. Profits scale linearly with the number of contracts held.

Q: How do I find contract specs like tick size and contract value?
A: Reputable exchanges publish detailed contract guides. Look for “Contract Specifications” or “Futures Guide” sections on the platform.

Q: Is there a standard contract size for Bitcoin?
A: While some platforms use 1 BTC per contract, others use smaller units like 0.001 BTC (mini contracts) or even USD-denominated contracts (e.g., $10 per contract).

How Long Does It Take to Access High-Leverage Trading?

Many new traders want to use high leverage (e.g., 50x or 100x), but access isn’t immediate. Platforms often impose restrictions based on:

It typically takes a few days to several weeks to qualify for high-leverage trading, depending on your activity and compliance with platform rules.

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Final Thoughts

Understanding how much you earn when a crypto futures contract rises by one tick is essential for effective risk and reward management. By mastering the formula—contract size × tick size—you can accurately predict potential gains from even minor price movements.

Whether you're trading Bitcoin futures, Ethereum CFDs, or exploring options strategies, always review the full contract specifications before entering any position. Knowledge of tick values empowers smarter decision-making and helps avoid unexpected losses in fast-moving markets.

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