reference · Order execution
Price Tick Grids: Why a Correctly Formatted Price Can Still Be Invalid
A price tick grid defines the permitted price increments for an instrument and order context. Decimal formatting alone does not prove that a limit, stop or target price is a valid trading price.
Key points
- Check trade tick size separately from display digits or platform point size.
- Choose rounding direction according to the order's intended constraint.
- Validate tick alignment, distance rules and current trading restrictions as separate checks.
Scope and assumptions
- The example uses a constant 0.25 increment on a zero-anchored grid. Some instruments or order contexts have other increments or price-band rules; check the applicable specification.
Display precision and trading precision differ
A price can look tidy on screen and still be invalid. With a permitted increment of 0.25, values such as 5234.00 and 5234.25 fit the grid, while 5234.18 does not. Showing 5234.18 to two decimal places changes its appearance, not its eligibility.
MetaQuotes documents trade tick size separately from point size. CME's tick explanation similarly treats a tick as the instrument's minimum price movement. Use the specification for the exact product rather than inferring a tick from the number of digits in a chart.
Two neighboring prices, two different constraints
Take a hypothetical calculated price of 5234.18 on a zero-anchored grid with tick size 0.25. Dividing by 0.25 gives 20,936.72 ticks. The neighboring valid prices are:
| Choice | Calculation | Price |
|---|---|---|
| Lower grid price | 20,936 × 0.25 | 5234.00 |
| Upper grid price | 20,937 × 0.25 | 5234.25 |
The upper price is closer, but it is 0.07 above the requested value. For a buy limit whose meaning is “pay no more than 5234.18,” moving it up changes the spending constraint. Choosing 5234.00 preserves that ceiling while potentially reducing the chance of execution.
For a sell limit representing a minimum acceptable price, the direction reverses: 5234.25 preserves a minimum of 5234.18. This comparison is about the price boundary. It does not prescribe a universal policy for every stop, target or order-management task.
Recalculate risk when a stop moves
Moving a protective stop to a neighboring tick changes the distance from entry. For a long position, moving the stop lower increases that distance; moving it higher decreases the distance but may violate a minimum-distance rule or change when it triggers. Recompute the planned money exposure after the final accepted price is known.
For a stop-limit order, validate both the trigger and the resulting limit. Rounding only one can alter the relationship between the stages. Keep the original values in the record so a later review can distinguish intentional normalization from an accidental conversion.
Validate against the destination context
Check the current symbol, contract month, tick rule and supported order type. Some rules vary with price bands or order contexts; a constant tick assumption should be confirmed, not silently extended. Implementations should also handle numerical precision so a representable tick is not rejected because of a tiny floating-point residue.
After grid alignment, test distance, freeze or modification restrictions, price bands and session availability separately. A valid grid price does not guarantee order acceptance or execution. The futures specifications guide connects these checks to copied orders, while pips, points and ticks explains the initial unit conversion.
One useful audit test starts with an already valid tick price: normalizing it should leave it unchanged. Test a midpoint and prices on both sides of a boundary as well, with the expected direction documented for each order type.
Questions and answers
Does displaying two decimals mean the tick is 0.01?
No. An instrument can display two decimals while permitting prices in increments such as 0.25. Read the trade tick size and relevant order rules.
Should every order price be rounded to the nearest tick?
No. Nearest rounding can violate a maximum purchase price or a minimum sale price. Stop and target rounding also changes their trigger distance, so the policy should reflect the intended order constraint.
Can a price on the tick grid still be rejected?
Yes. It can fail distance, price-band, market-status, order-type or account checks. Tick alignment is only one validation step.
Sources and further checks
Use the current source for your exact instrument, account and platform. Referencing a general specification does not establish support for every TradeCopier workflow.
- MetaQuotes: Symbol Properties · Checked September 19, 2026
- CME: Tick Movements · Checked September 19, 2026
- Spotware: Symbol API · Checked September 19, 2026
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