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Tick Size

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Dictionary Says

Definition of 'Tick Size '

The minimum price movement of a trading instrument. The price movements of different trading instruments varies. For example, if the minimum price movement of a stock is 0.01; the stock has a tick value of one cent (each tick is worth one cent for one stock). Futures markets typically have a tick size that is specific to the instrument. For example, the Russell 2000 e-mini futures contract (TF) has a tick size of .10; the value of each tick is $10.00 (each contract is worth $100 multiplied by the index).
Investopedia Says

Investopedia explains 'Tick Size '

The tick size of a trading instrument is its minimum price movement; in other words, it is the minimum increment in which prices can change. The tick value is what each price movement is worth in terms of dollars. A stock, for instance, has a tick size of 0.01, with a tick value of one cent. The e-mini S&P 500 contract has a tick size of .25 with a tick value of $12.50; each time price moves .25 (from 1110.50 to 1110.75 for example) the value changes $12.50, either up or down depending on the direction of the price movement.

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