Tick
Trading MechanicsThe smallest possible price movement on a trading platform. In 5-decimal forex pricing, a tick is one pipette (0.00001 for most pairs, 0.001 for JPY pairs).
What Is a Tick?
A tick is the smallest price increment that a trading platform can display. For forex pairs quoted to five decimal places (EUR/USD, GBP/USD), one tick equals one Pipette or 0.00001. For JPY pairs quoted to three decimal places (USD/JPY), one tick equals 0.001. A tick is the finest resolution at which price moves.
Ticks vs. Pips vs. Points
The relationship between these terms can be confusing because they overlap. A Pip is 0.0001 for most pairs. A Pipette is 0.00001 (one-tenth of a pip). A tick is the smallest possible price change on the platform, which equals one pipette in 5-digit pricing. A Point varies by context: on MT4/MT5, one point equals the minimum price change (same as a tick), so 10 points = 1 pip for 5-decimal pairs.
Tick Data and Charting
Tick charts display every individual price change rather than aggregating data into time periods. A 100-tick chart forms a new bar after every 100 price changes, regardless of how much time that takes. Tick charts are popular with scalpers because they show market activity levels directly. More ticks per minute indicate higher activity and typically tighter Spreads.
Related Terms
Pip
The smallest standard unit of price movement in a currency pair. For most pairs, one pip equals 0.0001. For JPY pairs, one pip equals 0.01.
Point
On MT4 and MT5 platforms, a point is the smallest price increment. For 5-decimal pairs, 1 point = 0.00001 (one pipette), so 10 points = 1 pip.
Pipette
A fractional pip equal to one-tenth of a pip. Shown as the fifth decimal place for most pairs (0.00001) or the third decimal for JPY pairs (0.001).
Spread
The difference between the bid (sell) price and the ask (buy) price of a currency pair. The spread is the primary cost of making a trade.