Understanding of Tick Size

• Tick size is nothing but minimum price movement of a stock.
• The movement may be either up or down.
• The Tick size will be from 1% to 3% of stock price.
• Mostly, in futures markets the Tick size will be used.
• Tick Size may change as per day-to-day trading value.

 Example.

       Shell Stock price is $50, the tick price will be determined as $0.5. The Shell’s share may  go up at least to $50.5 or down to $49.5