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.
References in periodicals archive ?
Wiese and seeks a high level of income consistent with minimum fluctuations in principal value and liquidity.
Their sole investment objective is to invest in higher levels of income that qualify for the section 243(b) 85-percent DRD with minimum fluctuations in capital.

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