What is a pip?
100,000 units of the base currency.
What is a tick?
A tick is the minimum permitted price increment of a trading instrument.
If gold has a tick size of $0.01, a price movement from $4,200.00 to $4,200.01 represents one tick.
A $1 movement in gold would therefore equal 100 ticks under the same tick-size assumption.
A tick is the minimum permitted price increment of a trading instrument.
For example, if gold has a tick size of $0.01, a price movement from $4,200.00 to $4,200.01 represents one tick.
A $1 movement in gold would therefore equal 100 ticks under the same tick-size assumption.
What is a point?
A point is another unit used to describe price movements. In stock indices, a movement from 5,000 to 5,001 is commonly described as a one-point increase.
On trading platforms, however, the definition of a point may depend on the instrument's quoted precision.
Why does the VT Markets calculator use ticks?
Unlike pip-based calculators commonly associated with forex trading, tick-based calculations use each instrument's specified price increment.
This provides a consistent calculation method across supported markets, including forex, metals and indices, when the correct tick values and contract specifications are applied.
