Tick

In Forex trading, a "Tick" refers to the smallest possible price movement of a currency pair. It represents a change in price, either up or down, by the smallest increment allowed by the market. Ticks are a fundamental unit of measurement in trading, as they track the real-time fluctuations in currency prices.

The frequency and direction of ticks provide traders with insights into market activity and price trends. For example, a series of upward ticks may indicate a bullish trend, while a series of downward ticks may suggest a bearish trend. In highly liquid markets, ticks can occur very rapidly, reflecting the constant ebb and flow of buying and selling pressure.

Understanding ticks is essential for traders who use technical analysis, as they can help in making decisions about entry and exit points, as well as in setting stop-loss and take-profit levels.