• HDFC securities
• 14 Apr 2025
• Knowledge Centre

NSE Revises Tick Size from April 15: Key Update for Traders

 

 The NSE is set to revise tick sizes for stocks, indices, and F&O contracts starting April 15, based on prices as on March 28.

What is Tick Size?

 

Tick size is the minimum price movement a security can make. For example, a ₹0.05 tick size means a stock can move from ₹100.00 to ₹100.05, but not ₹100.02.

What’s Changing?

 

Tick sizes will now vary based on the price of the stock or index:

Stocks:

Security Price		Currnet Tick Size	Proposed Tick size
From	To
Below 250		0.01	0.01 (unchanged)
> 250	1000	0.05	0.05 (unchanged)
> 1000	5000	0.05	0.10
> 5000	10000	0.05	0.50
>10000	20000	0.05	10
> 20000		0.05	50

This apply for both Stock and its corresponding Stock Futures

Indices:

Index Level		Currnet Tick Size	Revised Tick size (Futures)
From	To
0	15000	0.05	0.05 (unchanged)
> 15000	30000	0.05	0.10
> 30000		0.05	0.20

These apply to both Index and its corresponding index futures

 

 

Why It Matters

 

• Better Price Discovery: Larger tick sizes reduce noise and improve trend clarity.
• Improved Liquidity: Higher-priced stocks now have more meaningful price moves.
• More Efficient Trades: Ideal for traders and algos relying on clean order books.

 

Final Thoughts

 

This tick size revision is a thoughtful move by NSE to align with global best practices. Traders, especially those dealing in Index Futures, high-value stocks, or using algo strategies, should review their order placements and strategy execution plans before April 15.

 

While it may seem like a small change, the impact on execution cost, strategy precision, and market behavior could be significant. Staying ahead of such regulatory changes gives you a definite edge.

Kindly note that the Options contracts on Index/Stock options contracts shall continue to be available for trading with a uniform tick size of Rs 0.05 or 5 paisa.

For more details, one can check the exchange circular(s) here:

1. https://nsearchives.nseindia.com/content/circulars/CMTR67133.pdf 

2. https://nsearchives.nseindia.com/content/circulars/FAOP67134.pdf

3. https://nsearchives.nseindia.com/content/circulars/FAOP67135.pdf