I got a bit confused – the course notes (page 96) state that the tick size is 0.0001 however the technical article (https://www.accaglobal.com/uk/en/student/acca-qual-student-journey/qual-resource/acca-qualification/p4/technical-articles/exchange-derivatives.html) states that the tick is 0.00001.
Is my understanding right – it just depends on how exactly is the exchange rate given; if 4 decimal spaces then tick is 0.0001, if 5 decimal spaces then tick is 0.00001; it just depends and it is not one absolute value?
Thank you very much for wonderful lectures!
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Ticks
11y ago#1For currency futures, one tick is 0.0001 (the smallest movement in the exchange rate). The article is a misprint.
Thank you for the explanation.
11y ago#3You are welcome :-)
However, in case of JPY futures, the tick size is 0,000001 (not 0,0001).
Am I correct?
11y ago#5Ooops - yes you are correct. Yen are quoted differently than $'s and Euros.
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