NSE revises tick sizes for stock market derivatives: Know what it means

For example, if a stock has a tick size of Rs 0.05, then the price can only go up from Rs 100.00 to Rs 100.05, and not Rs 100.02.

Revised tick size as per NSE

• Stocks priced below Rs 250 – Tick size Rs 0.o1
• Stocks priced between Rs 251 and Rs 1,000 – Tick size Rs 0.05
• Stocks priced between Rs 1,001 and Rs 5,000 – Tick size revised from Rs 0.05 to Rs 0.10
• Stocks priced between Rs 5,001 and Rs 10,000 – Tick size revised from Rs 0.05 to Rs 0.50
• Stocks priced between Rs 10,001 and Rs 20,000 – Tick size revised from Rs 0.05 to Rs 1.00
• Stocks priced above Rs 20,001 – Tick size revised from Rs 0.05 to Rs 5.00

The modifications made in the tick size as per NSE will apply to both the cash market (CM) and the stock derivatives (F&O) segment. The revisions in tick size will have an impact on price discovery, leading to less price fluctuations and improved trend qualities.

Further, higher tick sizes for certain stocks will lead to more meaningful price moves, causing better rewards for investors.