A trading tick refers to the smallest possible price movement of a financial instrument, such as a stock, currency pair, or futures contract. It serves as the basic unit of measurement of price changes in the market. Ticks are important for traders to assess market activity and determine the direction of price movements. Tick size vs tick value Tick size represents the minimum price increment by which an asset's price can change. For example, in the stock market, the tick size may be $0.01. Tick value, on the other hand, indicates the monetary value of each tick movement. In our stock market example with a tick size of $0.01, each tick would represent a value of $0.01. Importance of Understanding Trading Ticks Understanding trading ticks is essential for traders to make informed decisions in the market. By analyzing tick data, traders can identify trends, assess market liquidity and determine optimal entry and exit points for their trades. Mastery of trading ticks enables traders ...