The National Stock Exchange (NSE) has announced to reduce tick size — or the minimum price movement possible — to one paisa for the stocks below Rs 250.
- Effective June 10, the tick size for cash segment and their corresponding futures will be reduced from the current 5 paisa to one paisa.
- A tick size is the minimum price movement by which stock prices can change during the session. In another words, it refers to the least possible reduction or increase in the stock price.
- For instance, if the share is trading at Rs 100, the next possible level for buying it would now be Rs 100.01 instead of Rs 100.05 which is followed currently.
