The price of a financial instrument may vary based on the supply and demand for that financial instrument. In Trading, Tick size (Tick Movement, Tick Data) is the smallest amount a price can change when the market trend is up or down. You would have placed buy order or sell order but there may be no momentum, or more volatility or range bound for that financial instrument. You will not be sure whether you have to book profit or get out with loss. The following table will help you to know about the minimum amount a price has to increase/or decrease from your cost price so that you can get out with little profit/little loss.
The column Min Price Rs. serves as a bench mark for your profits and losses. On the trading terminal, you can see the prices quoted on “Quotation/Base Value” and not on “Trading Unit”.
The below mentioned formulae in the table (Formula Table) will provide information about all columns and how they are linked to derive profits. If the market is range bound, you can do multiple transactions for the same product or multiple products and earn more profits.
Name of the Commodity
Actual Trading Unit
Actual Quotation/Base Value
Trading Unit Divided by Quotation/Base Value
The Price that you bought
The Price that you sold
The minimum price, it has to increase (LONG), or decrease (SHORT), so that you can get out with minimum profits.
Formula: Sold Price Minus Bought Price
The minimum profit.
Formula: ((Sold Price – Bought Price) * Lot Size) Minus ((Bought Price * Lot Size * .0003) + (Sold Price * Lot Size * .0003))
The minimum price, it will increase or decrease.
Example for tick price. Tick Size example is based on Bought Price for MCX and Sold Price for NCDEX.
In MCX Tick Size table, we have taken example as GOLD. Similarly you can do the calculation for all MCX PRODUCTS or NCDEX PRODUCTS.
Example: GOLD. If GOLD price has increased by 12 rupees, then you come out with minimum profits.
Trading Unit = 1 kilograms = 1000 grams
Quotation/Base Value: 10 grams
Lot Size = 1000 grams/10 grams = 100
Bought Price = 18400; Sold Price = 18412; Min Price = (18412 – 18400) = 12
Profit = ((18412 – 18400) * 100) Minus ((18400*100*.0003) + (18412 *100*.0003)
= ((12*) *100)) Minus ((552) + (552.36))
= (1200) Minus (1104.36)
Loss, Brokerage for NCDEX Traded Products NCDEX: Lot Size, Tick Size & Profits