What Is Tick Trading?

In the stock market, a "tick" refers to the change in the price of a stock shown on a stock exchange ticker, according to The Investment FAQ website. The ticker uses abbreviated company names and shows the current price of a company's shares.

Types

A tick on the stock market can take either an upward or downward movement, reports The Investment FAQ. When a share price is reported to have climbed higher than its last tick, an "uptick" has taken place, while a lower price is reported to be a "down tick."

Market

Tick trading assesses the strength of a stock market by gauging how many shares have taken or upticks or down ticks during a trading day, according to the Day Trading It website. Tick charts report the number of shares with upticks minus the number of down tick shares, to give either a positive or negative number that reflects a strong (bullish) or weak (bearish) market.

Reports

Each stock market reports ticks in a different way, providing different information about the movement of a share price during a trading period. The New York Stock Exchange provides real-time tick information, but markets such as the NASDAQ provide information when available that can be in the wrong order.

References

• The Investment FAQ: Trading, Up Tick and Down Tick
• Day Trading It: NYSE Tick