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Definition:

Futures markets business futures contracts, and the terms tick size, and tick value, are part of the contract specifications for all futures markets.

Tick Size

A futures market’s tick size is the minimum amount that the cost of the market can change. For example, the EUR futures market has a tick size of 0.0001, which means that the smallest accrument 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 market’s tick value is the moolah value of one tick (one minimum price movement). For specimen, the EUR futures market has a tick value of $12.50, which means that for every 0.0001 that the prize 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 minimum price value.

Also Known As: Minimum bounty change, Minimum price value