{"id":12262,"date":"2026-05-22T13:39:31","date_gmt":"2026-05-22T13:39:31","guid":{"rendered":"https:\/\/lemonn.co.in\/blog\/glossary\/tick-size\/"},"modified":"2026-05-22T13:39:31","modified_gmt":"2026-05-22T13:39:31","slug":"tick-size","status":"publish","type":"glossary","link":"https:\/\/lemonn.co.in\/blog\/glossary\/tick-size\/","title":{"rendered":"Tick Size"},"content":{"rendered":"<p><a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/tick-size\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">Tick size<\/a> is the minimum amount by which a stock or contract price can change in either direction. Indian exchanges set tick size by instrument: most cash equities tick in five paise, while <a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/index-futures\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">index futures<\/a> move in 0.05-point increments. Knowing tick size matters for scalping, F&amp;O strategies, and reading the order book correctly.<\/p>\n<div><strong>Key takeaways:<\/strong>\n<ul>\n<li>Tick size is the smallest allowed price increment for a <a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/trading\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">trading<\/a> instrument.<\/li>\n<li>Most <a class=\"glossaryLink\"  href=\"https:\/\/lemonn.co.in\/blog\/glossary\/nse\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'  tabindex='0' role='link'>NSE<\/a>\/<a class=\"glossaryLink\"  href=\"https:\/\/lemonn.co.in\/blog\/glossary\/bse\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'  tabindex='0' role='link'>BSE<\/a> cash equities have a tick of &#8377;0.05; some illiquid scrips may be &#8377;0.01.<\/li>\n<li><a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/nifty\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">Nifty<\/a> and Bank Nifty futures tick at 0.05 <a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/index\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">index<\/a> points.<\/li>\n<li>Options tend to tick at 0.05 paise on the <a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/premium\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">premium<\/a>, regardless of the underlying.<\/li>\n<li>Tick size sets the minimum profit a trade can capture and is critical for scalpers.<\/li>\n<\/ul>\n<\/div>\n<h2 id=\"why-tick-size-exists\">Why tick size exists<\/h2>\n<p>Without tick limits, prices could quote in fractions of a paisa, making the order book chaotic and giving high-frequency traders an unfair edge. By setting a minimum tick, exchanges standardise quoting, ensure orderly markets, and let every participant compete at the same precision level.<\/p>\n<h2 id=\"tick-size-across-instruments\">Tick size across instruments<\/h2>\n<table>\n<tr>\n<th>Instrument<\/th>\n<th>Tick size<\/th>\n<\/tr>\n<tr>\n<td>Most NSE cash equities<\/td>\n<td>&#x20B9;0.05<\/td>\n<\/tr>\n<tr>\n<td><a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/stocks\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">Stocks<\/a> under &#x20B9;15 \/ illiquid scrips<\/td>\n<td>&#x20B9;0.01 (varies)<\/td>\n<\/tr>\n<tr>\n<td>Nifty \/ Bank Nifty futures<\/td>\n<td>0.05 index points<\/td>\n<\/tr>\n<tr>\n<td>Stock futures<\/td>\n<td>&#x20B9;0.05<\/td>\n<\/tr>\n<tr>\n<td>Index \/ <a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/stock-options\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">stock options<\/a><\/td>\n<td>&#x20B9;0.05 on the premium<\/td>\n<\/tr>\n<tr>\n<td>USD\/INR futures<\/td>\n<td>&#x20B9;0.0025<\/td>\n<\/tr>\n<tr>\n<td>Gold (MCX)<\/td>\n<td>&#x20B9;1 per 10 grams<\/td>\n<\/tr>\n<\/table>\n<h2 id=\"tick-size-for-scalpers\">Tick size for scalpers<\/h2>\n<p>Scalpers, who try to capture tiny moves repeatedly, must understand tick size deeply. If Nifty futures tick at 0.05 points and the <a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/lot-size\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">lot size<\/a> is 25, one tick is worth &#x20B9;1.25 per lot. After paying <a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/broker\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">broker<\/a>age, exchange fees, and spreads, a scalper needs the price to move several ticks just to break even. That math is what kills many would-be scalpers.<\/p>\n<h2 id=\"tick-size-and-order-placement\">Tick size and order placement<\/h2>\n<p>An order placed at an invalid price (such as &#8377;100.03 when the tick is &#8377;0.05) will be rejected by the exchange. Brokers usually round automatically, but it pays to know your instrument&rsquo;s tick size to avoid surprises, especially in F&amp;O. Some illiquid options have tick sizes that effectively make them un-tradeable for short-term strategies.<\/p>\n<h2 id=\"tick-size-vs-lot-size\">Tick size vs lot size<\/h2>\n<p>People often confuse the two. Tick size is the minimum price change; lot size is the minimum quantity. Together they determine how much one tick of movement costs you. For Bank Nifty futures (lot 15, tick 0.05), one tick is worth &#x20B9;0.75 per lot. Multiply by your number of lots to see the rupee impact.<\/p>\n<h2 id=\"when-the-exchange-changes-tick-size\">When the exchange changes tick size<\/h2>\n<p>Exchanges sometimes change the tick size of a stock based on its price band &#x2014; for instance moving from &#x20B9;0.05 to &#x20B9;0.01 when a stock falls below &#x20B9;15. These changes are announced via circulars and applied with a few days&#x2019; notice. Algorithmic traders pay close attention because such changes affect spread economics.<\/p>\n<h2 id=\"frequently-asked-questions\">Frequently asked questions<\/h2>\n<div>\n<h3 id=\"can-my-limit-order-be-placed-at-a-price-between-two-ticks\">Can my <a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/limit-order\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">limit order<\/a> be placed at a price between two ticks?<\/h3>\n<p>No. The exchange enforces tick-size discipline; non-conforming prices are rejected.<\/p>\n<h3 id=\"does-tick-size-affect-mutual-funds\">Does tick size affect <a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/mutual-fund\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">mutual fund<\/a>s?<\/h3>\n<p>No. MFs transact at end-of-day <a class=\"glossaryLink\"  href=\"https:\/\/lemonn.co.in\/blog\/glossary\/nav\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'  tabindex='0' role='link'>NAV<\/a> without tick constraints. Tick size only matters for exchange-traded instruments.<\/p>\n<h3 id=\"why-do-some-option-prices-show-&#x20B9;0-05-ticks-even-when-the-stock-ticks-at-&#x20B9;0-05\">Why do some option prices show &#x20B9;0.05 ticks even when the stock ticks at &#x20B9;0.05?<\/h3>\n<p>Premium price levels are tracked separately from the underlying, but exchanges standardise both at 0.05 to keep the system simple.<\/p>\n<h3 id=\"how-does-tick-size-impact-bid-ask-spreads\">How does tick size impact <a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/bid-ask-spread\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">bid-ask spread<\/a>s?<\/h3>\n<p>The minimum possible spread is one tick. In a highly liquid stock with one-tick spread, you cannot get a better quote inside the spread.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Tick size is the minimum amount by which a stock or contract price can change in either direction. Indian exchanges set tick size by instrument: most cash equities tick in five paise, while index futures move in 0.05-point increments. Knowing tick size matters for scalping, F&amp;O strategies, and reading the order book correctly. Key takeaways: [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":0,"menu_order":0,"template":"","meta":{"_uag_custom_page_level_css":"","footnotes":""},"class_list":["post-12262","glossary","type-glossary","status-publish","hentry"],"blocksy_meta":[],"uagb_featured_image_src":{"full":false,"thumbnail":false,"medium":false,"medium_large":false,"large":false,"1536x1536":false,"2048x2048":false,"web-stories-poster-portrait":false,"web-stories-publisher-logo":false,"web-stories-thumbnail":false},"uagb_author_info":{"display_name":"Team Lemonn","author_link":"https:\/\/lemonn.co.in\/blog\/author\/ashu\/"},"uagb_comment_info":0,"uagb_excerpt":"Tick size is the minimum amount by which a stock or contract price can change in either direction. Indian exchanges set tick size by instrument: most cash equities tick in five paise, while index futures move in 0.05-point increments. Knowing tick size matters for scalping, F&amp;O strategies, and reading the order book correctly. Key takeaways:&hellip;","_links":{"self":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/glossary\/12262","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/glossary"}],"about":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/types\/glossary"}],"author":[{"embeddable":true,"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/users\/3"}],"version-history":[{"count":0,"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/glossary\/12262\/revisions"}],"wp:attachment":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/media?parent=12262"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}