TradingIntermediate#Structure#Exchange
Tick Size
T
Definition
The smallest permitted price increment for an order on a specific trading venue and market. It is a venue rule, not a universal property of the asset or a measure of execution quality.
Source reviewed
- Hyperliquid Docs: Order book opens in a new tab
Supports: Hyperliquid documents that its orders use integer multiples of tick size and lot size and are matched in price-time priority, illustrating a venue-specific market rule.
Concept Diagram
Key Takeaways
1
Tick size is a venue- and product-specific price grid
2
Check current market metadata for tick and lot size before submitting an order
3
A smaller tick can permit finer quotes but does not guarantee spread, fill, or lower cost
4
Valid price increments do not remove partial-fill, liquidity, fee, or priority risk
Practical Example
Before placing an order, a user retrieves the selected venue's current product metadata and rounds the price and size to the required increments. They check the order-book depth and fee schedule separately rather than assuming the smallest valid price increment will improve execution.
Finished learning?
Related Terms
Blockchain
Hyperliquid L1A layer-1 blockchain whose documentation describes HyperCore spot and perpetual order books and HyperBFT consensus. Product availability, latency, fees, liquidity, and risk remain deployment- and market-specific.
Trading
Post-Only OrderA venue-specific limit-order instruction intended to prevent immediate matching so the order rests on the book if accepted. Exact cancellation, rejection, adjustment, and fee behavior depend on the venue.
Trading
Point of Control (POC)The price bin with the highest reported traded volume in a selected volume-profile calculation. It depends on the venue, data, binning method, and time window chosen.
Trading
SlippageThe difference between a quoted or expected trade result and the result that can execute under the protocol's state and limits.
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