Tick Size and Tick Value

Tick size is the smallest price increment an instrument is allowed to move, and tick value is what that increment is worth in account currency for one contract or lot. Together they convert a price move into money: profit equals the number of ticks moved multiplied by the tick value and the number of lots. In forex the equivalent concept is pip value, but index, metal and commodity CFDs are usually described in ticks or points instead. Tick size and tick value are set in the instrument's contract specification and vary widely between markets, so the same ten-point move can be trivial on one instrument and significant on another.