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- This topic has 5 replies, 3 voices, and was last updated 9 years ago by
John Moffat.
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- April 11, 2015 at 9:46 pm #240958
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!
April 12, 2015 at 10:48 am #240999For currency futures, one tick is 0.0001 (the smallest movement in the exchange rate). The article is a misprint.
April 12, 2015 at 4:49 pm #241024Thank you for the explanation.
April 13, 2015 at 6:43 am #241065You are welcome 🙂
April 13, 2015 at 12:51 pm #241135However, in case of JPY futures, the tick size is 0,000001 (not 0,0001).
Am I correct?
April 14, 2015 at 7:03 am #241225Ooops – yes you are correct. Yen are quoted differently than $’s and Euros.
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