Price Tick

A tick is the smallest price change that a security (stock, future, commodity etc.) can make.

Tick should not be confused with $TICK which is the NYSE TICK and is an indicator.

A tick is best illustrated by some examples.

The E-mini S&P500 stock index future has price changes in increments of 0.25 points. This future's price will change from 1237.25 to 1237.50 to 1237.75 etc. The tick size is said to be 0.25 of a point.

Compare this to the pit traded S&P500 future which moves in increments of 0.1 points. The price will change from 1237.2 to 1237.3 to 1237.4 etc. The tick size for this future will be 0.1 of a point.

The mini future on the DJIA is 1 whole point so the tick size will be 1 point.