{"id":18627,"date":"2026-09-04T06:05:34","date_gmt":"2026-09-04T12:35:34","guid":{"rendered":"https:\/\/shoonya.com\/blog\/?p=18627"},"modified":"2026-09-07T22:56:00","modified_gmt":"2026-09-08T05:26:00","slug":"what-is-a-trading-tick","status":"publish","type":"post","link":"https:\/\/shoonya.com\/blog\/what-is-a-trading-tick\/","title":{"rendered":"Trading Ticks: The Tiny Numbers Behind Every Price Move in the Stock Market"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_87 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\"><p class=\"ez-toc-title\" style=\"cursor:inherit\"><\/p>\n<\/div><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/shoonya.com\/blog\/what-is-a-trading-tick\/#What_Is_a_Trading_Tick\" >What Is a Trading Tick?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/shoonya.com\/blog\/what-is-a-trading-tick\/#What_Is_Tick_Size_and_How_Is_It_Set\" >What Is Tick Size and How Is It Set?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/shoonya.com\/blog\/what-is-a-trading-tick\/#Tick_Size_vs_Tick_Value_What_Is_the_Difference\" >Tick Size vs Tick Value: What Is the Difference?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/shoonya.com\/blog\/what-is-a-trading-tick\/#How_Do_Trading_Ticks_Work_in_Options_and_Futures\" >How Do Trading Ticks Work in Options and Futures?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/shoonya.com\/blog\/what-is-a-trading-tick\/#Is_the_Trading_Tick_Different_for_Call_and_Put_Options\" >Is the Trading Tick Different for Call and Put Options?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/shoonya.com\/blog\/what-is-a-trading-tick\/#How_Does_Tick_Size_Appear_in_an_Option_Chain\" >How Does Tick Size Appear in an Option Chain?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/shoonya.com\/blog\/what-is-a-trading-tick\/#What_Is_a_Trading_Tick_Chart\" >What Is a Trading Tick Chart?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/shoonya.com\/blog\/what-is-a-trading-tick\/#What_Is_Tick_Trading\" >What Is Tick Trading?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/shoonya.com\/blog\/what-is-a-trading-tick\/#What_Are_Some_Common_Tick_Trading_Strategies\" >What Are Some Common Tick Trading Strategies?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/shoonya.com\/blog\/what-is-a-trading-tick\/#What_Mistakes_Should_Traders_Avoid_With_Tick_Trading\" >What Mistakes Should Traders Avoid With Tick Trading?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/shoonya.com\/blog\/what-is-a-trading-tick\/#End_Note\" >End Note<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/shoonya.com\/blog\/what-is-a-trading-tick\/#Trading_Tick_FAQs\" >Trading Tick : FAQs<\/a><\/li><\/ul><\/nav><\/div>\n<nav style=\"--separator: &quot;\/&quot;\" class=\"wp-block-breadcrumbs\" aria-label=\"Breadcrumbs\"><ol><li><a href=\"https:\/\/shoonya.com\/blog\/\">Home<\/a><\/li><li><a href=\"https:\/\/shoonya.com\/blog\/stock-market\/\">Stock Market<\/a><\/li><li><span aria-current=\"page\">Trading Ticks: The Tiny Numbers Behind Every Price Move in the Stock Market<\/span><\/li><\/ol><\/nav>\n\n\n<meta charset=\"UTF-8\">\n<meta name=\"viewport\" content=\"width=device-width, initial-scale=1.0\">\n \n<link rel=\"preconnect\" href=\"https:\/\/fonts.googleapis.com\">\n<link rel=\"preconnect\" href=\"https:\/\/fonts.gstatic.com\" crossorigin=\"\">\n<link href=\"https:\/\/fonts.googleapis.com\/css2?family=Figtree:wght@300;400;500;600;700;800&amp;family=Bricolage+Grotesque:wght@700;800&amp;display=swap\" rel=\"stylesheet\">\n<style>\n  :root{\n    --copper:#EFA145;\n    --copper-deep:#D17800;\n    --steel:#424242;\n    --forest:#082F25;\n    --forest-2:#0C3D30;\n    --fresh:#6CE890;\n    --green:#45D965;\n    --mint:#EEFFF2;\n    --mint-2:#F6FFF9;\n    --line:#DDEBE3;\n    --line-soft:#E8F3EC;\n    --red:#C11414;\n    --ink:#2B342F;\n    --grey:#5F6B65;\n    --maxw:820px;\n  }\n  *{box-sizing:border-box;}\n  body{\n    margin:0;font-family:\"Figtree\",system-ui,-apple-system,sans-serif;\n    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var(--line);border-radius:14px;\n    overflow:hidden;transition:border-color .2s ease, box-shadow .2s ease;\n  }\n  .faq-item:hover{border-color:var(--copper);box-shadow:0 2px 10px rgba(239,161,69,0.18);}\n  .faq-item[open]{border-color:var(--copper);box-shadow:0 2px 10px rgba(239,161,69,0.18);}\n  .faq-q{\n    list-style:none;cursor:pointer;display:flex;align-items:center;justify-content:space-between;\n    gap:16px;padding:17px 20px;font-weight:700;color:var(--forest);font-size:16px;\n  }\n  .faq-q::-webkit-details-marker{display:none;}\n  .faq-q::marker{content:\"\";}\n  .faq-icon{\n    flex:0 0 auto;width:26px;height:26px;border-radius:50%;background:var(--copper);color:#fff;\n    display:flex;align-items:center;justify-content:center;font-size:16px;font-weight:800;line-height:1;\n    transition:transform .2s ease, background .2s ease;\n  }\n  .faq-item[open] .faq-icon{background:var(--forest);transform:rotate(45deg);}\n  .faq-a{margin:0;padding:0 20px 18px;color:#33413B;font-size:15.5px;line-height:1.6;}\n\n  .video-wrap{position:relative;padding-bottom:56.25%;height:0;overflow:hidden;border-radius:14px;margin:6px 0 22px;border:1px solid var(--line);}\n  .video-wrap iframe{position:absolute;top:0;left:0;width:100%;height:100%;border:0;}\n\n  @media (max-width:640px){\n    body{font-size:16.5px;}\n    .masthead{padding:32px 24px 28px;}\n    .body{padding:28px 24px 34px;}\n    h2{margin-top:36px;}\n    table{font-size:14px;}\n  }\n\n  .entry-title,\n  .post-title,\n  .single-post h1,\n  h1.entry-title{color:#000!important;}\n<\/style>\n\n\n\n  <div class=\"body\">\n    <p>Open any trading app and watch a stock price for ten seconds. It rarely sits still. It nudges up by a few paise, dips back down, climbs again, all in the space of a heartbeat. Every single one of those tiny nudges has a name: a trading tick.<\/p>\n    <p>Most traders watch this happen every day without ever pausing to ask what decides how big or small that nudge can be. Once you understand what a trading tick is and how tick size works, price charts stop feeling random and start making a lot more sense.<\/p>\n\n    <h2><span class=\"ez-toc-section\" id=\"What_Is_a_Trading_Tick\"><\/span>What Is a Trading Tick?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n    <div class=\"quote\">\n      <p><strong>Definition:<\/strong> A trading tick is the minimum permitted upward or downward price movement in a stock or derivative contract.<\/p>\n    <\/div>\n    <p>For example, if a stock has a tick size of \u20b90.05:<\/p>\n    <ul class=\"doc\">\n      <li>Its price can move from \u20b9500.00 to \u20b9500.05.<\/li>\n      <li>It can move down from \u20b9500.00 to \u20b9499.95.<\/li>\n      <li>An order at \u20b9500.02 would not be accepted because that price does not follow the permitted increment.<\/li>\n    <\/ul>\n    <p>An upward movement of one tick is sometimes called an uptick, while a downward movement is called a downtick.<\/p>\n\n    <h2><span class=\"ez-toc-section\" id=\"What_Is_Tick_Size_and_How_Is_It_Set\"><\/span>What Is Tick Size and How Is It Set?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n    <p>Tick size is the monetary value of the smallest permitted price change. It determines the price intervals at which buy and sell orders can be placed.<\/p>\n    <p>For NSE cash-market securities, excluding certain instruments such as ETFs, the applicable price-based tick sizes are:<\/p>\n    <div class=\"tbl-scroll\">\n      <table>\n        <thead>\n          <tr><th>Stock Price Range<\/th><th>Tick Size<\/th><\/tr>\n        <\/thead>\n        <tbody>\n          <tr><td>Below \u20b9250<\/td><td>\u20b90.01<\/td><\/tr>\n          <tr><td>\u20b9250 to \u20b91,000<\/td><td>\u20b90.05<\/td><\/tr>\n          <tr><td>\u20b91,000 to \u20b95,000<\/td><td>\u20b90.10<\/td><\/tr>\n          <tr><td>\u20b95,000 to \u20b910,000<\/td><td>\u20b90.50<\/td><\/tr>\n          <tr><td>\u20b910,000 to \u20b920,000<\/td><td>\u20b91.00<\/td><\/tr>\n          <tr><td>Above \u20b920,000<\/td><td>\u20b95.00<\/td><\/tr>\n        <\/tbody>\n      <\/table>\n    <\/div>\n    <p>The exchange reviews the applicable tick size monthly based on the security&#8217;s closing price. Traders should therefore check the latest contract or security details before placing an order. These bands became effective on 15 April 2025 under an NSE circular.<\/p>\n\n    <h2><span class=\"ez-toc-section\" id=\"Tick_Size_vs_Tick_Value_What_Is_the_Difference\"><\/span>Tick Size vs Tick Value: What Is the Difference?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n    <p>Tick size tells you how much the quoted price can move. Tick value tells you the monetary impact of that movement on your position.<\/p>\n    <div class=\"tbl-scroll\">\n      <table>\n        <thead>\n          <tr><th>Factor<\/th><th>Tick Size<\/th><th>Tick Value<\/th><\/tr>\n        <\/thead>\n        <tbody>\n          <tr><td>Meaning<\/td><td>Minimum permitted price movement<\/td><td>Gain or loss resulting from a one-tick movement<\/td><\/tr>\n          <tr><td>Depends on<\/td><td>Exchange specifications<\/td><td>Tick size and traded quantity<\/td><\/tr>\n          <tr><td>Example<\/td><td>\u20b90.05 per share<\/td><td>\u20b90.05 \u00d7 1,000 shares = \u20b950<\/td><\/tr>\n        <\/tbody>\n      <\/table>\n    <\/div>\n    <p>For example, if you hold 1,000 shares and the price moves by one tick of \u20b90.05, the position value changes by \u20b950, before brokerage, taxes and other charges.<\/p>\n\n    <h2><span class=\"ez-toc-section\" id=\"How_Do_Trading_Ticks_Work_in_Options_and_Futures\"><\/span>How Do Trading Ticks Work in Options and Futures?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n    <p>Tick-size rules vary across stocks, index derivatives, stock derivatives, currencies and commodities. Traders should check the contract specifications for the instrument being traded.<\/p>\n    <p>For NSE equity derivatives:<\/p>\n    <ul class=\"doc\">\n      <li>A stock future generally follows the tick size applicable to its underlying security in the cash market.<\/li>\n      <li>Stock options with an underlying security price below \u20b9250 have a tick size of \u20b90.01.<\/li>\n      <li>Other stock options generally have a tick size of \u20b90.05.<\/li>\n      <li>Index options generally quote in increments of \u20b90.05, subject to the applicable contract specifications.<\/li>\n    <\/ul>\n    <p>The \u20b90.01 tick size for eligible stock options became effective on 3 November 2025, according to an NSE circular.<\/p>\n\n    <h2><span class=\"ez-toc-section\" id=\"Is_the_Trading_Tick_Different_for_Call_and_Put_Options\"><\/span>Is the Trading Tick Different for Call and Put Options?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n    <p>No separate tick-size rule applies simply because an option is a call or a put.<\/p>\n    <p>Calls and puts based on the same underlying follow the tick-size specification applicable to that contract category. However, their premiums can move differently because they respond differently to the underlying price, volatility, time to expiry and other factors.<\/p>\n\n    <h2><span class=\"ez-toc-section\" id=\"How_Does_Tick_Size_Appear_in_an_Option_Chain\"><\/span>How Does Tick Size Appear in an Option Chain?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n    <p>An option chain displays call and put premiums across different strike prices and expiries. These premiums can be quoted only in permitted tick-size increments.<\/p>\n    <p>For example, if the applicable tick size is \u20b90.05, a premium may move from \u20b942.10 to \u20b942.15, but not to \u20b942.12.<\/p>\n    <p>Do not confuse tick size with strike-price intervals. Tick size governs changes in the option premium, while the strike interval determines the gap between available strike prices.<\/p>\n\n    <h2><span class=\"ez-toc-section\" id=\"What_Is_a_Trading_Tick_Chart\"><\/span>What Is a Trading Tick Chart?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n    <p>A tick chart creates a new bar or candle after a predefined number of trades rather than after a fixed amount of time.<\/p>\n    <p>For example, a 500-tick chart forms a new candle after 500 trades:<\/p>\n    <ul class=\"doc\">\n      <li>During active periods, candles form quickly.<\/li>\n      <li>During quieter periods, they take longer to complete.<\/li>\n    <\/ul>\n    <p>Each candle displays the open, high, low and close recorded across that batch of trades.<\/p>\n    <p>This differs from a 5-minute chart, which forms one candle every 5 minutes regardless of how many trades occur.<\/p>\n    <p>Tick charts can help traders study transaction activity, but the meaning of one &#8220;tick&#8221; may vary across charting platforms. Some platforms count individual trades, while others process the available data differently.<\/p>\n\n    <h2><span class=\"ez-toc-section\" id=\"What_Is_Tick_Trading\"><\/span>What Is Tick Trading?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n    <p>Tick trading is a short-term approach that focuses on relatively small price movements. Positions may be opened and closed within seconds or minutes, depending on market conditions and the trader&#8217;s setup.<\/p>\n    <p>The outcome depends on more than identifying the direction of the next tick. Traders must also consider:<\/p>\n    <ul class=\"doc\">\n      <li>Bid-ask spread<\/li>\n      <li>Available market depth<\/li>\n      <li>Order-execution speed<\/li>\n      <li>Slippage<\/li>\n      <li>Brokerage and statutory charges<\/li>\n      <li>Position size and risk limits<\/li>\n    <\/ul>\n    <p>Even when the market moves in the expected direction, costs or unfavourable execution can turn a small anticipated gain into a loss.<\/p>\n\n    <h2><span class=\"ez-toc-section\" id=\"What_Are_Some_Common_Tick_Trading_Strategies\"><\/span>What Are Some Common Tick Trading Strategies?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n    <p>Various tick trading strategies can be used to analyse short-term price and trading activity.<\/p>\n    <ul class=\"doc\">\n      <li><strong>Scalping:<\/strong> Taking short-duration positions that target relatively small price changes.<\/li>\n      <li><strong>Momentum trading:<\/strong> Tracking a sudden increase in buying or selling activity and trading in the direction of that movement.<\/li>\n      <li><strong>Tick-chart breakout:<\/strong> Looking for price to move beyond a range formed on a tick chart.<\/li>\n      <li><strong>Order-book analysis:<\/strong> Examining available buy and sell orders at different price levels.<\/li>\n      <li><strong>Algorithmic trading:<\/strong> Using predefined rules to monitor market data and place orders automatically.<\/li>\n    <\/ul>\n    <div class=\"quote\">\n      <p><strong>Note:<\/strong> These approaches do not assure profits. Tick-level movements are difficult to predict, and frequent trading can increase both costs and losses.<\/p>\n    <\/div>\n\n    <h2><span class=\"ez-toc-section\" id=\"What_Mistakes_Should_Traders_Avoid_With_Tick_Trading\"><\/span>What Mistakes Should Traders Avoid With Tick Trading?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n    <p>Tick trading demands close attention, but reacting to every small movement can lead to poor decisions. Common mistakes include:<\/p>\n    <ul class=\"doc\">\n      <li><strong>Treating every tick as a signal:<\/strong> Individual price changes may be market noise rather than evidence of a meaningful trend.<\/li>\n      <li><strong>Ignoring the broader trend:<\/strong> Focusing only on tick-level activity can cause traders to miss important support, resistance and higher-time-frame movements.<\/li>\n      <li><strong>Relying only on tick charts:<\/strong> Tick data should be interpreted alongside volume, price action and relevant market conditions.<\/li>\n      <li><strong>Trading without predefined rules:<\/strong> Entries, exits, position sizes and risk limits should be established before placing a trade.<\/li>\n      <li><strong>Chasing rapid price moves:<\/strong> Entering after a sudden movement may result in an unfavourable execution price or an immediate reversal.<\/li>\n      <li><strong>Overtrading:<\/strong> Taking too many positions can increase costs, emotional pressure and exposure to short-term market noise.<\/li>\n    <\/ul>\n\n    <h2><span class=\"ez-toc-section\" id=\"End_Note\"><\/span>End Note<span class=\"ez-toc-section-end\"><\/span><\/h2>\n    <div class=\"outlook\">\n      <p>A trading tick defines the smallest price increment available for an order. Understanding its relationship with quantity, spreads, and trading costs can help traders evaluate order prices more accurately.<\/p>\n    <\/div>\n\n    <div class=\"final-cta\">\n      <h3>Analyse live prices, charts and option chains in one place with Shoonya.<\/h3>\n      <a href=\"https:\/\/apptrove.shoonya.com\/d\/home\" target=\"_blank\" rel=\"noopener\">Open a Free Demat Account \u2192<\/a>\n    <\/div>\n\n    <h2><span class=\"ez-toc-section\" id=\"Trading_Tick_FAQs\"><\/span>Trading Tick : FAQs<span class=\"ez-toc-section-end\"><\/span><\/h2>\n    <div class=\"faq\">\n      <details class=\"faq-item\">\n        <summary class=\"faq-q\">What is a trading tick?<span class=\"faq-icon\">+<\/span><\/summary>\n        <p class=\"faq-a\">A trading tick is the smallest price movement allowed for a stock, future, or option on the exchange, also written as &#8220;tradingtick&#8221; or referred to as a &#8220;trade tick.&#8221;<\/p>\n      <\/details>\n      <details class=\"faq-item\">\n        <summary class=\"faq-q\">What is tick size?<span class=\"faq-icon\">+<\/span><\/summary>\n        <p class=\"faq-a\">Tick size is the fixed rupee value of one tick, set by SEBI and the exchanges, and it varies based on the price band of the stock or contract.<\/p>\n      <\/details>\n      <details class=\"faq-item\">\n        <summary class=\"faq-q\">Is the trading tick different for a call versus a put option?<span class=\"faq-icon\">+<\/span><\/summary>\n        <p class=\"faq-a\">No, Calls and puts on the same underlying follow the same tick size, generally \u20b90.05, with a reduced \u20b90.01 tick for stock options priced below \u20b9250.<\/p>\n      <\/details>\n      <details class=\"faq-item\">\n        <summary class=\"faq-q\">Does tick size apply within an option chain?<span class=\"faq-icon\">+<\/span><\/summary>\n        <p class=\"faq-a\">Yes, every strike and expiry listed in an option chain follows the same tick-size rule as any other contract in that segment.<\/p>\n      <\/details>\n      <details class=\"faq-item\">\n        <summary class=\"faq-q\">What are tick trading strategies used for?<span class=\"faq-icon\">+<\/span><\/summary>\n        <p class=\"faq-a\">Tick trading strategies such as scalping, momentum trading, and algorithmic trading are used to capture small, frequent gains from tick-by-tick price movement rather than holding positions for longer trends.<\/p>\n      <\/details>\n    <\/div>\n\n  <\/div>\n\n\n  <div class=\"disclaimer\">\n      <strong>Disclaimer:<\/strong> This content is for education and awareness purpose only and should not be considered investment advice or a recommendation. Investments in securities markets are subject to market risks. Read all the related documents carefully before investing.\n    <\/div> <br>\n","protected":false},"excerpt":{"rendered":"<p>Open any trading app and watch a stock price for ten seconds. It rarely sits still. It nudges up by a few paise, dips back down, climbs again, all in the space of a heartbeat. Every single one of those tiny nudges has a name: a trading tick. Most traders watch this happen every day &hellip; <a href=\"https:\/\/shoonya.com\/blog\/what-is-a-trading-tick\/\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;Trading Ticks: The Tiny Numbers Behind Every Price Move in the Stock Market&#8221;<\/span><\/a><\/p>\n","protected":false},"author":17,"featured_media":18633,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":"","_members_access_role":[],"_members_access_error":""},"categories":[13],"tags":[10523,10522,10517,10519,10520,10518,10524,10521],"class_list":["post-18627","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-stock-market","tag-tick-trading-strategies","tag-trader-tick","tag-trading-tick","tag-trading-tick-call-vs-put","tag-trading-tick-option-chain","tag-tradingtick","tag-what-are-ticks-in-trading","tag-what-is-tick"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Trading Tick: Tick Size, Charts and Strategies<\/title>\n<meta name=\"description\" content=\"A trading tick is the smallest price move a stock or option can make. 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