What is a tick in trading?

The term Tick is the smallest possible price movement of a market to the right of the decimal point. Ticks prior to market decimalisation were 1/16 of a dollar. CFD and Spread Bets brokers do not generally use Ticks and most markets will move in either Points or PIPS. The term Ticks is still used by some traders to mean the smallest movement. 

Categories: E-mini Trading FAQs, Forex FAQs, Index Trading FAQs, Learn to trade

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