Share market basics
The smallest increment by which a price can move on the exchange, such as 5 paise for most NSE equities or 0.0025 for USD/INR futures.
Tick size is the minimum price step the exchange allows. For most NSE cash equities it is 5 paise at the time of writing, though NSE changed tick sizes for lower-priced stocks in 2024, so a ₹90 share may move in one-paisa steps while an ₹800 share like SBI moves in five-paise steps. Nifty options tick in 5 paise, and USD/INR futures in 0.0025. Tick size defines the smallest possible spread, and multiplied by the lot size it gives the rupee value of one tick: for USD/INR, 0.0025 times 1,000 dollars is ₹2.50. Scalpers care about tick value because they aim to capture only a few ticks per trade. Orders placed at a price that is not a multiple of the tick size are rejected. Check the current tick size for any contract you trade, as exchanges revise them.
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