Trading Tick

A “Trading Tick” refers to the minimum price movement of a trading instrument, such as a Stock or futures contract. For example, if a Stock is quoted at $50.00 and the tick size is $0.01, the next possible price would be $50.01 or $49.99. In futures trading, a contract might have a tick size of $0.10, meaning the price can move in increments of that amount. Understanding ticks is essential for traders to grasp price fluctuations and market movements.