Minimum price fluctuation


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Minimum price fluctuation

Smallest increment of price movement possible in trading a given contract. Also called point or tick.

Tick

On an exchange, a trade in which a security was traded after another trade. There are three basic types of tick. A plus tick occurs when the price is higher than the previous trade. A minus tick occurs when the price is lower, and finally a zero tick happens when the price is the same. Ticks are recorded and published in real time throughout a trading day. Certain regulations govern the types of trade that can occur after certain kinds of ticks. See also: Zero-plus Tick, Zero-minus Tick.
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The contract size will be 10 tons with a minimum price fluctuation of US$25 per ton.
The contracts are traded in multiples of 5,000 tonnes, with a minimum price fluctuation of five cents/tonne and are available for six months, six quarters and five seasons.
The PJM contracts will have a minimum price fluctuation of $0.

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