The smallest price step an order can use
Tick size is the increment prices move in when you place an order. It is set by price band, and pricier shares usually move in bigger steps. You cannot enter a price finer than the tick, so limit orders must line up with it. Finer ticks narrow the gap between the best bid and offer, making trading cheaper.
Where the tick is $1, a limit order at $1,000.5 cannot be entered.
Japan — In Japan the steps come from a table by price band, and different stocks use different tables.
South Korea — Since 25 January 2023 both Korean stock markets use one table: steps of ₩1 under ₩2,000, ₩5 under ₩5,000, ₩10 under ₩20,000, ₩50 under ₩50,000, ₩100 under ₩200,000, ₩500 under ₩500,000 and ₩1,000 above that.
For learning, not investment advice. Decisions are your own.
StockFit · TrueNorthLabs Inc.