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Newb trying to understand ZB and ZN

Discussion in 'Financial Futures' started by Gamer, Feb 8, 2009.

1. Gamer

Hi,
I have read the contract specifications on the CBOT site many time, I still can't understand how tick values and points work on ZB and ZN, primarily because I am not used to fractional price quotes.

For ZB, this is what it says on CBOT:
"CBOT: Tick Size: Minimum price fluctuations shall be in multiples of one-half of one thirty second point per 100 points (\$15.625 per contract)... Par shall be on the basis of 100 points."

I understood here that the value of a tick is \$15.625 per contract, and the size of a tick is 16/100, i.e. 0.16. Is that correct? I don't have a clue about the last sentence ('par shall be on the basis of 100 points').

Then it says:
"CBOT: Price Quote: Points (\$1,000) and one-half of 1/32 of a point; i.e., 80-16 equals 80-16/32, 80-165 equals 80-16.5/32."

Here this has completely confused me. Does this mean a point is worth \$1,000? Is this the same point that was mentioned above in the context of the tick value? Where did this come from?

Could someone please explain in plain English?

I want to calculate the value of a daily range, how do I do that?

2. ram

Every 005 move is equal to 1 tick. For example, if price moves from 128'010 to 128'030, that's 4 ticks

3. donnap

This is fairly straight forward, but I've been there in regards to exchange explanations.

80 to 81 is a full point. \$1000 per point.

It may be helpful to use 320th with quotes.

So 80.315 is 80 315/320

The next tick would be 81.

005/320 x 1000 = \$15.625

4. Gamer

Thanks a lot.

Why can't they write in simple English on the website? Seem to be almost in a mission to make it obscure.

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