Option Tick Size

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The minimum value by which the price of an Option contract can change.

It is the minimum value by which the price of an Options contract can change. Suppose the premium for an Options contract is currently 10.00 and the tick size is 0.10 then the price of the contract will increase as 10.10, 10.20, 10.30 etc. It cannot change as 10.13, 10.18, 10.22. Similarly, when the price decreases, it will decrease as 9.90, 9.80 and 9.70.

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