Well, when I first tried to understand what they were, it was something mess to me, because in TradeStation Help Documentation, I cant clearly understand each of them, because in the examples, this image was percepted by me:
Explanation of A: it is C/B
Explanation of C: it is A*B
So, you might ask, “What is A or B itself?!” Yes, something like that happened to me. After brainstroming I’ve got them, and remembered… But that didnt last long. After a year or two, I’ve forgot them again, and went back to DevHelp and still same 2 hour brainstorming to understand those values again.. Finally, I’ve got them again, and for the purpose not to forget them, I have decided to write down a brief what I’ve got..
What is and How to use them
If there is something mistake, please let me know. At first, I advise you to forget the DevHelp explanation for these values and never read it again (for the reason not to mess up you again). Just write down this paragraph (at least, it was better for me). Before starting reading, you should remember, that 3 of them (MinMove, PointValue and PriceScale) are important parameters, and they should be provided by Platform. Other terms (Point, BigPointValue..) are just Math functions you can calculate yourself, without the help of paltform.
PriceScale – This is a pre-determined parameter (Platform gives you specific PriceScale value per symbol), you dont need to manually determine it. PriceScale is a number (i.e. 100) which represents the fractional portion of a full point move for a symbol.This is not obtained by calculations, instead this is a FIXED parameter and different symbols have different PriceScale (Platform provides those variable numbers). I mean, how many digits are after dot. For example, many stocks have like this:
PriceScale is 10000 [5 digits after dot] (This is for i.e. EUR/USD )
PriceScale is 100 [2 digits after dot] (This is for E-Mini S&P, and I will use this one in future paragraphs)
p.s. You may think, that in these cases, i.e. for E-MINI price change happens by 0.01 , but that’s not always true.. let’s discuss it a bit later).
So, remember, what is
PriceScale. Shortly, it indicates “how many digits after dot”.
2) Point – this is just a name we call one minimal portion of price, according to
PriceScale… For example, in E-MINI we can say that 0.01 is one point. 0.02 is two points and etc. So, you can use a word “Point” to express how many minimal units you refer.
PointValue – This is a pre-determined parameter (Platform gives you specific
PointValue per symbol). This is a market value of one Point. For example, one point of E-MINI (which is 0.01) value is 0.50 . So, you can say that
PointValue is 0.50 for E-MINI.
MinMove (Minimum Movement Amount of Points) – we should remember the difference among these one for any symbol:
- Minimum Movement in price
- Minimum Movement in contract value
- Minimum Movement Amount of points ( <— only this is called MinMove)
MinMove – This is a pre-determined parameter (Platform gives you specific
MinMove value per symbol). For example, as I’ve mentioned in the beginning, one E-MINI Point is 0.01 ( and
PointValue is 0.50 as we said) , but on the chart, you will see that price doesnt change by 1 point (0.01 increment), but it changes by 25 (
MinMove) points, which is 0.25 increment (call this one Minimum Movement in price).
Let’s summarize (for example: E-MINI )
– one(1) Point size (of symbol price) is: 0.01
PointValue is: 0.50
– Minimum Movement amount(
MinMove) of points is: 25
– Minimum Movement in price is: 0.25 (lets call it TickSize)
– Minimum Movement in contract value is: 25(
MinMove) * 0.50(
PointValue) = 12.5 (lets call it TickValue)
BigPointValue – This is nothing special. Platform just automatically calculates and gives you how much value (per contract) has 1 full point move. This is: amount of Points in 1 full point (a.k.a.
For example, for E-MINI, it is : 100 (because
PriceScale is 100 ) * 0.5 (
PointValue) = 50
I hope now you have a better understanding of those values. I (once again) advise, not to think about what is written in TS Docs for these values at this moment (or if you will do that, experience the mess-up yourself :)) .
For different platforms, there is somehow different… In ThinkOrSwim there is provided only two parameters TickSize and TickValue. MeTatrader and NinjaTrader have more pre-defined parameters, like Tradestation… You have just to look up for correct command for those platforms. Just I cant remember if there are exact alternative of the TradeStation commands..