In plain English
What Tick means
In trading, a tick is a one-step price change. For some products, that step is the minimum increment the market allows; for others, traders use tick to mean any price change by one increment. The exact cash value of a tick depends on the contract size.
Why it matters
Tick movement is the basic unit for calculating gains and losses in many CFDs and other derivatives. If you know the tick value, you can translate a price move into account currency. That is essential for comparing products that quote similar prices but have different multipliers.
Example
If a CFD moves from 105.20 to 105.21 and the minimum increment is 0.01, that is one tick. If your contract size is 10 per point, a one-tick move equals 0.10 in profit or loss before costs. This is simplified and depends on the product design.
Quick answers
Common questions
Is a tick always the same as a pip?+
No. A pip is a forex convention, while a tick is a more general market increment.
Can tick size and tick value differ?+
Yes. Tick size is the price increment; tick value is the cash value of one increment.
Sources