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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Contract price Prices will be quoted in dollars and cents per fluctuations mWh and the minimum price fluctuation will be $0.01 per mWh.
Minimum Price Fluctuation: 1/4 cent per pound or $12.50 per contract.
The minimum price fluctuation will be $0.0001 per contract, equivalent to a tick value of $5 per contract.

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