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UNIT MOVE TABLE
JOE ROSS' CONTRACT SPECS TABLE
Unit Move and Minimum Fluctuation
Traders have an intuitive feel for these terms, but precise definitions are
scarce.  Most traders know that Corn moves as 252,253,254,255, with the
difference between the numbers being worth $50, or that Lean Hogs
move as 67, 68, 69, 70, with the difference between the numbers being
worth $400 or that Bonds move in $1000 increments.

However, it is not always so obvious.  Currencies and energy
commodities have their major incremental move in the decimal part of the
price.  The minimum fluctuation is also confusing, as it's either not given,
or given in ticks or other units.  In some cases, multiple ticks make up
one minimum fluctuation!

Knowledge of the unit move and the minimum fluctuation is essential in
trading.  They are needed to know the value of a move on a chart, to give
trading orders with the correct price, to determine profit and loss and to
determine profit and stop objectives.

The Unit Move Table presented here is a continuation of work done by
Joe Ross in his Futures Contract Specs table, and in his course "Power
Order Trading Strategies".  Here are links to these two works:

http://www.tradingeducatorcom/resources/futures_contracts_specs.htm

www.tradingeducators.com/books.htm#TOPS

The Unit Move Table is intended to be used along side of Joe's Futures
Contract Specs table.  There's a button at the top of this page that links
to it.

Joe defines the term "Unit Move" in his Contract Specs table, and in the
"Power Order Trading Strategies" course he presents prices in a series of
increasing tick moves.

Among the units commonly used for ticks are pt, ct, oz, c/bu, thpt, nd
(1/32), index pt and ct/lb/cts/ton.  What these units mean when looking at
a chart or price quote is hard to know.  Because of this and since multiple
ticks can make up a minimum fluctuation, ticks are not used in the Unit
Move Table.

Instead of ticks or the many different units used in the exchanges'
contract specifications, only one unit will be used, Joe Ross' "unit move".  
It is given the symbol "um".  The minimum fluctuation is defined as a
fraction the um.

These definitions are illustrated with two commodities: Corn and Hogs.
Corn uses a fractional minimum fluctuation, Hogs uses a decimal.  Here
are examples of both price series, showing the unit move and the
minimum fluctuation at work.

UNIT MOVE FOR CORN

265
<-------- um of $50
266
<-------- um of $50
267
<-------- um of $50
268

MINIMUM FLUCTUATION FOR CORN

265
<-------- min. fluctuation of 1/4 um = $12.50
265 1/4
<-------- min. fluctuation of 1/4 um = $12.50
265 1/2
<-------- min. fluctuation of 1/4 um = $12.50
265 3/4
<-------- min. fluctuation of 1/4 um = $12.50
266

UNIT MOVE FOR HOGS

67
<-------- um of $400
68
<-------- um of $400
69
<-------- um of $400
70

MINIMUM FLUCTUATION FOR HOGS

67.300
<-------- min. fluctuation of .025 um = $10
67.325
<-------- min. fluctuation of .025 um = $10
67.350
<-------- min. fluctuation of .025 um = $10
67.375
<-------- min. fluctuation of .025 um = $10
67.400
Here is how this information looks in the Unit Move Table:

                                             Unit                                     Minimum                  Minimum
Contract  Symbol Exchange   Move  Unit Move Series    Fluctuation          Fluctuation Series

Corn        C          CBOT         $50     265,266,267,268   1/4 um=$12.50     265, 265 1/4, 265 1/2,  265 3/4, 266

Hogs        LH        CME           $400   67,68,69,70           .025 um = $10      67.300, 67.325, 67.350, 67.375, 67.400
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