Question
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On what factors does the tick depends?
1 Answer
<p id="isPasted">The factors affecting ticks in trading include the asset class, which dictates the minimum price increment (tick size), and market exchange rules, which set specific tick values for securities. Regulatory bodies, like India's SEBI, also play a role in determining tick size based on the price, volatility, and required regulations for a particular stock. Additionally, market depth (supply and demand) and liquidity influence how a price move can be executed, with smaller tick sizes generally improving liquidity and allowing for more frequent, tighter trades. </p><p><br></p>
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