N00b ?: What's a "tick" anyway?

[Ricter]

I don't daytrade so...

Is it like a point? Some correspondence to a percent?

 

[gnome]

a tick is the smallest price change for the instrument. For most stocks, that's .01.

 

[traderdon56]

Quote from gnome:

a tick is the smallest price change for the instrument. For most stocks, that's .01.

That's right, but for futures it depends on which one you're talking about. For the e-mini S&P( ES ), a tick is a 1/4 point, which is worth $12.50, making a full point worth $50.00 per contract. For the Russell 2000 (ER ) a tick is a tenth of a point, and each tick is worth $10.00.

 

[EdgeHunter]

Quote from gnome:

a tick is the smallest price change for the instrument. For most stocks, that's .01.

Yes, and here is the picture of a tick - better know as a market maker fading the 50 lot you just thru at the YM during a midday breakOut...



cj...