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  1. Home
  2. /Glossary
  3. /Tick Size
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trading

Tick Size

The minimum price increment at which an asset can trade.

Definition

The minimum price increment at which an asset can trade. On most crypto exchanges, Bitcoin might have a tick size of $0.10, meaning the price can only move in $0.10 increments. Smaller tick sizes allow more precise pricing but can reduce order book depth at each level.

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Related Terms

Order Book

A list of all buy and sell orders for an asset, organized by price.

Spread

The difference between the highest bid and lowest ask price for an asset.

Limit Order

An order to buy or sell at a specific price or better.

Accumulation Phase

A period when smart money quietly buys up an asset before a major price move.

Annualized Return

The average yearly return on an investment, calculated to account for compounding.

Arbitrage

Profiting from price differences of the same asset across different markets.

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