TradingIntermediate#Structure#Exchange
Tick Size
T
Definition
The minimum price increment at which an asset can be traded on an exchange.
Verified by CryptoLV Alpha
Concept Diagram
Key Takeaways
1
Tick size is the minimum price increment at which an asset can be traded on an exchange
2
Smaller tick sizes enable tighter spreads and more precise order placement
3
Exchanges set tick sizes based on asset price — higher-priced assets have larger tick sizes
4
Understanding tick size is important for optimizing limit order placement and minimizing slippage
Practical Example
BTC has a tick size of $0.10 on most exchanges — you can place orders at $60,000.00, $60,000.10, $60,000.20, etc. A small-cap token with tick size of $0.0001 allows much finer price precision for micro-cap trading.
Finished learning?
Related Terms
Blockchain
Hyperliquid L1A specialized app-chain designed for high-performance perpetual trading with sub-second finality and native orderbooks.
Trading
Post-Only OrderA limit order that ensures the trader only acts as a 'maker' (adding liquidity) and never as a 'taker' (removing it).
Trading
Point of Control (POC)The price level with the highest traded volume for a particular time period in the volume profile.
Trading
SlippageThe difference between the expected price of a trade and the actual price at which the trade is executed due to low liquidity.
Related Deep Dives
Master the hub of Trading
Explore all our strategic guides about Trading to take your operations to the next level.
View all articles