Meaning of 10 ticks per trade

[leshake]

Hi, anyone,
I'm taking a trading course (pretty good actually) except for lapses expecting a beginning to understand trader's jargon. For instance, an unexplained line in the course says the following:

"I will trade 2 contracts with a maximum risk of 10 ticks per trade ($100/.5% of acct.) with the ST chart as my setup chart."

I understand what a contract is, I understand what an ST (short term chart) is, but I do have the foggiest what

"10 ticks per trade"
means. What does that mean if you're day trading.
Help, please.
Leshake

 

[vinicius]

Hi, anyone,
I'm taking a trading course (pretty good actually) except for lapses expecting a beginning to understand trader's jargon. For instance, an unexplained line in the course says the following:

"I will trade 2 contracts with a maximum risk of 10 ticks per trade ($100/.5% of acct.) with the ST chart as my setup chart."

I understand what a contract is, I understand what an ST (short term chart) is, but I do have the foggiest what

"10 ticks per trade"
means. What does that mean if you're day trading.
Help, please.
Leshake

FTSE-100

Open - 4000
Close - 4001

4000 - 4001 = 1tick profit

 

[leshake]

Got it. . .I think. Thanks, Vinicious

FTSE-100

Open - 4000
Close - 4001

4000 - 4001 = 1tick profit

I gather, therefore, that a "tick" is one open close cycle whatever the window. .1 minute, 1 hour, 1 day, etc.

A tick is relative to the kind of trading you do.
Thanks.
leshake

 

[jiggly]

a tick is the smallest unit of measure, 1 increment of price.

 

[disi]

Hi, anyone,
I'm taking a trading course (pretty good actually) except for lapses expecting a beginning to understand trader's jargon. For instance, an unexplained line in the course says the following:

"I will trade 2 contracts with a maximum risk of 10 ticks per trade ($100/.5% of acct.) with the ST chart as my setup chart."

I understand what a contract is, I understand what an ST (short term chart) is, but I do have the foggiest what

"10 ticks per trade"
means. What does that mean if you're day trading.
Help, please.
Leshake

What kind of course it is if they suggest using 10 ticks risk? I am not sure if this is anything good for a rookie.

 

[Hoggums]

Agreed - trade with a 10 tick stoploss and you'll get stopped out >90% of the time.

Throw the course in the bin.

 

[leshake]

Thanks for the input

Agreed - trade with a 10 tick stoploss and you'll get stopped out >90% of the time.

Throw the course in the bin.

Actually, I finally did find a definition. The course author was talking about using tick charts, but didn't say that. The problem for a newbie like me was that, prior that that statement, he had talked only about 1 day, 3 day, 1 minute, 1 hour, etc. time frames. Then without preamble out came a statement about maximmum risk of 10 ticks per contract. In my view, that was a wrong thing to do in a course teaching fundamentals of trading. . .particularly without an explanation of terms. I had never heard of tick charts, and I imagine others taking the course had never heard of them either.

Again all, thanks for your kind input. I hope to learn a lot here.
Leshake