Tick
A model EUR/USD feed jumps from Bid 1.10000 to 1.10003 in one update. With a permitted tick size of 0.00001, that is three price increments in one data tick, or 0.3 pip. For EUR 10,000, the price difference is USD 0.30 before charges.
An event and a price unit
A tick update can change Bid, Ask, Last or volume. A quote update is not necessarily a completed trade. Tick size determines permitted price increments; the displayed point is a precision unit and may differ. Check which field produced a candle and which price activates an order.
Tick value
In a linear FX model, base-currency units multiplied by tick size gives the quote-currency value of one price increment. Convert it to the account currency where necessary. Other contracts can use a multiplier or different payoff model. Do not reuse the value from a similarly named symbol without checking its specification.
Tick history and tests
Record timestamps, source and quote sides. Aggregated bars lose event order and can hide spread changes, so they cannot always identify whether a stop or target happened first. Tick volume counts updates under a feed’s method; it is not automatically actual transaction quantity. Detailed data still need a realistic execution model.
FAQ
Is one tick always one pip?
No. A data update and a minimum price increment are already different meanings of tick; neither universally equals a pip.
Does every tick prove a trade took place?
No. Quote-only updates can occur without a reported execution. Check the feed fields.
