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Minimum Tick

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Minimum Tick
The smallest possible change in price to a security. Various regulations exist regarding what the minimum tick is for different securities, and which trades may occur on a tick. For example, until 2007, a short sale could not occur at the same price as the security's previous trade, when that price was itself a downtick from the trade before that. A minimum tick is also called a trading variation.See also: Tick test.

minimum tick
The smallest possible price movement of a security or contract. For example, equity options with premiums of 3 points and greater are traded in eighths of a point, while equity options with premiums less than 3 points may be quoted at sixteenth-of-a-point intervals. Also called trading variation.


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They are identical in terms of their notional value, minimum tick size, contract critical dates, and coupon.
Some of the differences between NYSE/Amex and Nasdaq trading relate to the minimum tick size on each market, and to chronological changes in the minimum tick size.
These results survive extensive partitioning of the data and differ in spirit from those reported ar ound the transition of the minimum tick size from eighths to sixteenths.
 
 
 
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