{"id":1699,"date":"2026-07-17T10:07:27","date_gmt":"2026-07-17T10:07:27","guid":{"rendered":"https:\/\/www.incredmoney.com\/knowledge-center\/?p=1699"},"modified":"2026-07-17T10:07:27","modified_gmt":"2026-07-17T10:07:27","slug":"tick-in-securities-trading-what-is-it-how-it-works","status":"publish","type":"post","link":"https:\/\/www.incredmoney.com\/knowledge-center\/share-market\/tick-in-securities-trading-what-is-it-how-it-works\/","title":{"rendered":"Tick in Securities Trading \u2013 What Is It & How It Works"},"content":{"rendered":"
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For active investors entering the market, knowing the exact price mechanics separates speculation and guessing from math. Before we dig deeper into “What is Intraday Trading? A Complete Guide to Mechanics, Risks and Reality,” Tick is the fundamental building block of all price movement.<\/p>\n

Tick Value Calculation: What is the Actual Value of 1 Tick in NSE\/BSE?<\/h2>\n

A tick is the smallest price change of a security on an exchange. On the National Stock Exchange (NSE) and BSE, the tick size is Rs. 0.05. So for calculating the tick value, multiply the standard tick size (\u20b90.05) with your total trade volume for the real monetary impact.<\/p>\n

For stocks, ticks are the standard increment for price changes, setting the tight bounds within which all securities trade. Investopedia says these standard increments affect market liquidity and bid-ask spreads. In general, the tighter the tick size, the more likely you have a very liquid market environment that can handle fast execution. Retail investors cannot bid for a stock at Rs 100.03 at will on the National Stock Exchange (NSE). The exchange infrastructure requires standard \u20b90.05 intervals, so an order would have to be either \u20b9100.00 or \u20b9100.05. This minimum price movement stops microscopic fractional bidding market manipulation.<\/p>\n

To calculate your actual tick value, you just multiply against your total position size. If an investor has 1,000 shares of a company, a single \u20b90.05 tick movement translates into \u20b950 in real portfolio value. High-frequency traders use exactly that calculation to decide if a small price move is worth putting up the capital. You need to know this math to deal with active trading’s hidden costs. It tells you how far a stock must move just to cover standard brokerage fees and exchange charges.<\/p>\n

How does Tick Trading Work: Complete Step-by-step Execution Guide<\/h2>\n

Tick trading involves placing large volume orders in order to profit from the smallest price movements in a highly liquid stock. Traders buy at the bid price and sell at the ask price just seconds later, relying on tight limit orders and automated stop-losses to make small profits.<\/p>\n

The idea behind tick trading is to act quickly on very small price moves rather than waiting for momentum over the longer term. According to Religare Online, the execution speed and absolute precision are a must for this approach. But one tick is just a fraction of a rupee. So overall the profitability comes down to volume. The volume has to be high and you have to use scalping strategies to accumulate hundreds of small wins over the course of the session.<\/p>\n