Tick

A tick is the smallest price change allowed on an instrument, mostly used on futures. Each tick has a fixed cash value.

On a futures market, price does not move continuously: it steps in minimum increments set by the exchange, called ticks. On the E-mini S&P 500, one tick is 0.25 point, or $12.50 per contract. On the 100-ounce COMEX gold future, a $0.10 tick is worth $10.

Thinking in ticks lets you calculate your risk exactly: an 8-tick stop on the E-mini is $100 per contract.

The word also means each individual price update. A tick chart draws a new bar every N price changes, regardless of how much time has passed.

The full lessonPips, points and ticks: measuring a price moveWhat is a pip in forex, a pipette, an index point or a futures tick? Clear definitions, how to calculate pip value and worked examples you can check.