What is Tick size?

By Research Desk
about 5 years ago

Tick size is the minimum difference in rates between two orders on the same side i.e., buy or sell, entered in the system for a particular scrip. Trading in scrips on NSE and BSE is done with the tick size of 5 paise currently.

In order to increase the liquidity and enable the market participants to put orders at finer rates, BSE has reduced the tick size from 5 paise to 1 paise in the following cases:

  1. Units of mutual funds
  2. Fixed income securities
  3. Equity shares having closing price up to Rs. 15 on the last trading day of the month.

Accordingly, the tick size in various stocks quoting up to Rs.15 is revised to 1 paise on the first trading day of month. The tick size so revised on the first trading day of month remains unchanged during the month even if the stock price undergoes a change.

E.g. Tick size of SBI is 5 paise, but tick size of GVK Power is 1 paise on BSE. On NSE, tick size of GVK Power remains as 5 paise. 

 

 

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