A price tick is the minimum increment by which the price of a security can move. It represents the smallest possible change in price, typically expressed as a fraction of a unit of currency. Therefore, option B, which states that a price tick is the minimum amount by which the price can move, is the correct choice.

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A Price Tick Is

Question 7

Multiple Choice

A price tick is

A) The maximum amount by which the price can move in a day.
B) The minimum amount by which the price can move.
C) The bid-ask spread on the price.
D) The minimum amount of trading required on the exchange per trade.

Correct Answer: