markets · beginner
Tick size
Tick size is the minimum price increment in which a security’s orders can be placed.
NSE and BSE define tick sizes that can vary by price range or instrument type.
A smaller tick size allows finer pricing but can increase message traffic in the book.
Derivatives and cash equities may follow different tick conventions.
Quote competitiveness is measured in ticks when traders join the best bid or ask.
Part of the Market Pulse Term of the Day series — factual market vocabulary, not investment advice.