tick

tick (point) The smallest increment of price fluctuation in a commodity market. For example, on LIFFE interest-rate futures, the tick size is 0.01% of the nominal value of the trading unit. Thus, for example, on a three-month euromark futures contract, the trading unit is DM1,000,000; for each tick up or down, the tick value is the tick size multiplied by the trading unit multiplied by the length of the contract in years, i.e. 0.0001 × 1,000,000 × 3/12 = DM25. If the contract was a futures purchase and the gain was 25 ticks, the profit would be DM625.