Tick size is the smallest amount by which a contract price is allowed to move on a given venue.
Last reviewed 4 September 2025 · Educational, not advice
A tick is the minimum price increment a market permits. If a contract can be priced only in whole cents, the tick size is one cent, and a price can move from forty cents to forty one cents but not to forty and a half. Tick size is set by the venue in its contract rules, and it can differ from one platform or product to another, so check the specification for the market you are in rather than assuming.
Tick size matters because it sets the finest resolution of price, and therefore the smallest possible step in the spread between the best bid and the best offer. A small tick lets prices and quotes sit closer together, which can mean tighter spreads. A larger tick forces prices into coarser steps. On contracts that settle at zero or at one hundred cents, the tick also frames how implied probability can be expressed, since each cent maps to roughly a percentage point of implied chance.
For an ordinary participant the practical effect is modest but real. The tick is the smallest edge you can capture by improving on the current best price, so it caps how finely you can compete for a place in the queue. In a market with a coarse tick, jumping ahead of resting orders costs a full increment rather than a fraction, which changes the maths of posting a limit order.
Do not assume a single tick size across the whole category. It is a contract level setting that varies, and a venue can use different ticks for different products or price ranges. Treat any specific number as something to confirm in the current contract rules, not a fixed feature of all prediction markets.
A contract trading at forty cents with a one cent tick can be improved only to forty one cents on the bid or thirty nine cents on the offer. If you believe fair value is forty point four, the tick will not let you express that directly, so you round to a whole cent. That rounding is part of why thin markets show prices in round steps.
Illustrative only. Numbers are examples, not a quote or a prediction, and exclude fees.
Tick size is a rule of the venue, not a sign of value, and a fine tick does not make a market safe. Any position on these venues can lose, and a contract can settle worthless. Stake only what you can afford to lose, never to chase a loss, and never on borrowed money. If it stops feeling like a free choice, step back. In the United States you can call or text the helpline on 1-800-GAMBLER or visit ncpgambling.org.
The smallest increment by which a contract price can move on a venue. If prices move only in whole cents, the tick is one cent.
No. It is set per contract and can vary by venue, by product, and sometimes by price range. Confirm it in the current contract rules.
It sets the finest step in price and therefore the smallest possible spread, which affects how closely quotes can sit and how you compete for the queue.
Not by itself. A small tick can allow tighter spreads, but liquidity, volume, and fees matter more to your real cost of trading.
The rules change fast. Get the changes that affect you, plain and current, not tips.
Independent. Every claim dated and sourced. No platform pays for its place.