Futures Trading Terms Glossary

MINIMUM PRICE FLUCTUATION

Welcome to the RJO Futures trading terms glossary. Within this glossary, you will find an expansive list of trading terms covering commodity, option, and futures trading terminology. Bookmark this section as a quick reference for definitions of trading terms as you browse the Internet and our site for more information on futures and options trading within the financial and commodities markets.

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Minimum Price Fluctuation×

Minimum price fluctuation are the smallest increment of price movement possible in trading a given contract, this can also be referred to as a tick. When a security is traded on an exchange, the movement is measured in ticks. There are three different types of tick, plus, minus, and zero. A plus tick is when the price of the security is higher than the price it was bought at, a minus tick is when the price of a security is lower than what it was bought at, and a zero tick is when the price is the same. Ticks fluctuate throughout the entire trading day, and often don’t stay at the exact same number for long, so it’s important to stay updated and keep watching price movements of your purchased contracts.