Upstox is a well-known online discount brokerage firm in India that offers trading services in a variety of markets, including equities, futures, options, and currencies. The tick size for various instruments on Upstox is based on the tick sizes specified by SEBI. In this article, we discuss on “What is tick size in Upstox?” 

What is tick size? 

Tick size refers to the smallest possible price movement that can be observed in a financial instrument such as a stock or a futures contract. It is the minimum price increment that must always be present between the consecutive bid and offer prices in the market. The tick size is set by regulatory authorities and stock exchanges to ensure orderly trading and pricing transparency. It determines the minimum price difference in which prices can change and is an essential aspect of trading in financial markets, impacting the profitability of trades and the overall liquidity of the market.

What is tick size in Upstox?

In the Indian stock market, the Securities and Exchange Board of India (SEBI) has prescribed minimum tick sizes for all stocks listed on the exchanges. The tick size for a stock can vary depending on its market price, with higher-priced stocks having larger tick sizes. For equity cash (delivery-based) trades, the tick size on Upstox is the same as that prescribed by SEBI.

Conclusion

Tick size is a significant factor in trading in financial markets as it determines the minimum price movement that can be observed. Upstox, like other brokers, adheres to the tick sizes prescribed by the regulatory authorities and provides traders with the ability to trade with tick sizes as small as 0.05 paise for intraday trades. Understanding tick size is essential for traders as it can impact the profitability of their trades and the overall liquidity in the market.