What is Tick?

This is the minimum price change – up or down – occurring within a given instrument. At the time of reading such information, you may feel that this is equivalent to the definition of a point. This happens, however, not always.

A tick is a single price change, regardless of how much the change was. If a single move (e.g., a large order) on the EUR/USD pair changes by 0.00030, it is 3 pips, 30 points, but only one tick.

Some instruments have predefined volumes ticks. For example, we can use as an example the German DAX index, which is 50 points. Despite the fact that we are dealing with a quote of the type 10800.50 this minimum by which the price can change at one time is 50.

It is worth remembering, that on CFDs each broker may use different quotes and different tick values.

What is Bad Tick?

This is a movement on the chart, which is caused by an error of the platform or the date of the feed, when in fact such a price on the market did not occur. To confirm bad tick information, it is best to compare the chart of a given instrument with an independent portal that provides current rates of financial instruments.