Construct · 1 fields · 1 citations

tick: a standalone construct

One name. One construct. A landmark on the map.

● anchor · a standalone construct Nearest construct by meaning·not indexed
tick1 CONSTRUCTTick sizeHARRIS · TICK SIZE

A single standalone construct; nearby constructs are located against it in the Collider. Tap a field for its definition, unit, and measures.

Market microstructure

The smallest increment a price can move

In market microstructure, a tick is the minimum increment by which the price of a traded instrument may change, the grid on which quotes and trades must fall. Harris's Trading and Exchanges explains how this tick size shapes the bid–ask spread, the incentive to provide liquidity, and the fine structure of the order book. The referent is a price quantum set by an exchange's rules, measured in currency units, and it is not a clock beat, a parasite, or a computer's timer.[1]

Unit
The minimum price increment permitted for a traded instrument
Recovery means
Not applicable
Measured by
Set in currency units per price step by exchange rules and studied through spreads and order-book depth

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Nearby constructs

escapement2 fields · 2 citationsjingle · one word, two constructsclock2 fields · 2 citationsjingle · one word, two constructscomplication2 fields · 2 citationsjingle · one word, two constructs

References

  1. Harris, L. (2003). Trading and exchanges: Market microstructure for practitioners. Oxford University Press. ISBN 9780195144703

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