Tick size and price increments across venues
Posted: Wed Oct 28, 2026 6:40 am
Not every market quotes prices in the same increments. EURUSD at five decimal places has a tick of 0.00001. Many futures contracts have larger minimum increments. Index CFDs may quote in 0.1 or 0.5 points, and some stocks in cents.
Tick size influences spreads and the shape of the order book. A larger tick size forces wider minimum spreads and creates queues at each price, where time priority matters. A smaller tick size allows tighter spreads and more fragmented liquidity.
For scalpers, tick size affects the minimum possible target and stop distances and the real cost of a one-tick move. On a futures contract with a large tick, a single tick can be a meaningful percentage of a typical scalp.
Comparing venues requires converting everything to the same unit, usually currency per standard position. A tick of 0.5 on an index contract worth 50 dollars per point is 25 dollars, a very different thing from a pipette on EURUSD.
Checking the specification page for tick size, tick value and minimum price movement before trading any new instrument avoids misjudging costs.
A quick memory aid: the base currency is the one being bought or sold, priced in the quote currency. EURUSD at 1.10 means one euro costs 1.10 dollars. USDJPY at 150 means one dollar costs 150 yen. Everything else follows from that.
Which instruments have tick sizes that changed the approach to targets and stops?
Tick size influences spreads and the shape of the order book. A larger tick size forces wider minimum spreads and creates queues at each price, where time priority matters. A smaller tick size allows tighter spreads and more fragmented liquidity.
For scalpers, tick size affects the minimum possible target and stop distances and the real cost of a one-tick move. On a futures contract with a large tick, a single tick can be a meaningful percentage of a typical scalp.
Comparing venues requires converting everything to the same unit, usually currency per standard position. A tick of 0.5 on an index contract worth 50 dollars per point is 25 dollars, a very different thing from a pipette on EURUSD.
Checking the specification page for tick size, tick value and minimum price movement before trading any new instrument avoids misjudging costs.
A quick memory aid: the base currency is the one being bought or sold, priced in the quote currency. EURUSD at 1.10 means one euro costs 1.10 dollars. USDJPY at 150 means one dollar costs 150 yen. Everything else follows from that.
Which instruments have tick sizes that changed the approach to targets and stops?