The smallest possible price change for a given instrument — one tick is the minimum increment a price can move.
A tick is the smallest unit of price change. In forex, a tick on a 5-decimal quote is 0.00001 — one pipette. On futures contracts (like the E-mini S&P 500), a tick is 0.25 index points worth $12.50 per contract. On indices CFDs, tick size varies by broker.
Tick is a market-microstructure concept. It tells you how granularly the market updates. In a fast-moving major like EUR/USD during London open, you might see 200+ ticks per second. In a quiet exotic at 3am, you might see 1 tick every 30 seconds. Tick frequency is a proxy for liquidity.
Traders care about ticks for two reasons: (1) the smaller the tick size, the tighter the spread can be, and (2) tick charts (which print a candle every N ticks rather than every N seconds) are popular with scalpers because they normalize for activity rather than time.
EUR/USD during the 2024 NFP release saw over 1,500 ticks in the first 60 seconds. Compare that to AUD/CHF at 4am Sydney where you might see 30 ticks in the same minute.
Frequently asked about tick
What is a tick in trading?+
The smallest possible price change for a given instrument — one tick is the minimum increment a price can move.
When will I see tick used in real trading?+
On scalper charts (tick charts, footprint charts), in futures contract specs, and in any conversation about market microstructure.
What is the most common mistake traders make with tick?+
Confusing ticks with pips on forex. They're related but not the same — on a 5-decimal pair, 10 ticks = 1 pip.
What do experienced traders know about tick that beginners don't?+
If a market is showing very few ticks per minute, liquidity is thin and your stops will be more vulnerable to slippage. Tick activity is a real-time liquidity meter.
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