Definition:
Futures markets trade futures contracts, and the terms tick size, and tick value, are part of the decrease specifications for all futures markets.
Tick Size
A futures market’s tick size is the minimal amount that the price of the market can change. For example, the EUR futures market has a tick dimensions of 0.0001, which means that the smallest increment that the price can move from 1.2902, would be up to 1.2903, or down to 1.2901. The tick size is also known as the minimum price change.
Tick Value
A futures customer base’s tick value is the cash value of one tick (one minimum sacrifice movement). For example, the EUR futures market has a tick value of $12.50, which means that for every 0.0001 that the price moves up or down, the profit or loss of a trade would increase or decrease by $12.50. The tick value is also known as the littlest price value.
Also Known As: Minimum rate change, Minimum price value
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