minimum tick(redirected from Minimum Fluctuation)
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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
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.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.