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Minimum tick

The smallest increment of price movement possible in trading a security, a futures contract or an option contract.

In the case of futures contracts, this increment is often expressed both in terms of the unit in which the contract is quoted (for example 10 cents per tonne for a canola futures) and of contract size (for example in dollars per contract, calculated as the minimum tick per unit ($0.10 per tonne) times the number of units (20 tonnes), which in this case equals $2.00 per contract).

Synonyms and variations

  • Minimum price fluctuation
  • Tick

See also