I am trying to understand how to calculate point value for each live cattle futures contract by looking at the contract's spec on CME website.
I understand that 0.00025 * 40,000 = $10 which is tick value or in other words dollar amount of minimum fluctuation. However, I do not understand how can I find, how many ticks are in a point?
When I used CME simulator, the info displayed matches my understanding. As you can see, tick size is 0.025 which is 1/40 of a point so
$10 * 40 gives us $400 which is dollar equivalent of a point value. If we multiply that with price, we get notional value of the contract.
Now my question is, how could I figure out from the contract specs? I am able to do this for most of the contracts especially index futures but not some agricultural ones.
Thank you for your help!
# Live Cattle LEQ1 Contract Size: 40000.0 Tick Size: 0.025 Tick Value: $10 (1 points has 40 ticks, so 1 point is 400) Last Price: $121.850 Notional Value of Order: $48,740.00 ( = 121.850 * 400) Margin committed to trade: $1,760.00 Side: BUY Qty: 1 Type: LMT Limit Price: 121.85 TIF: DAY