Definition and example
A price tick is the minimum increment defined for a contract. Its monetary value depends on the product’s size and multiplier. In a synthetic example with a 0.25-point tick, a one-point move contains four ticks.
Do not confuse a price tick with the transaction count used by a tick chart. Check the instrument sheet before converting movement into money. If a fictional tick is worth 0.50 currency units, four ticks are worth 2 per contract before costs; this figure does not describe a real product.
Sources and references
Chezur examples and explanations are educational. Consult the original source to verify conditions, data and updates.
Context and review of this explanation
What is a tick and how is it different from a point?
- Topics
- Units and costs · Instruments
- Level
- Beginner
- Skills
- Calculate with units and costs · Identify an instrument
- Examples
- Hypothetical situations illustrating the concept.
- Specialist review
- Not documented for this edition. Automated structure and internal-link checks do not establish specialist review.