NSE Stocks Tick Size is now 0.01 From 10th June On Dhan

Hi All

From 10th June, NSE has changed the tick size of stocks priced below Rs 250 to 0.01 from 0.05. This is in reference to the circular NSE/CMTR/62174 dated 24 May, 2024. These changes are available on all the Dhan platforms.

Update Tick Size

What does this mean for market & traders ?
The minimum price movement for stocks trading below Rs 250 has been reduced to Rs 0.01. This change enhances liquidity by increasing the frequency & instances for successful trades. Like for example, the market depth difference for Vodafone-Idea:

Or simply if we see on charts with a 5 seconds timeframe, we will find better movement in the stock with reduced tick size.
TV

If the stock price moves above Rs 250 during the live market, will the tick price change in real-time?
No. The exchange will review the tick size of a stock on a monthly basis. The closing price on the last trading day of the month will be used to determine the tick size, which will be made applicable for all the trading days of next month.

How will this affect the tick size of futures & options of the corresponding stocks?
The stock futures will have the same tick size as applicable for underlying stock in the cash segment. There will be no changes in the tick size of stock options.

How will the tick size of newly listed stocks be determined ?
In case of IPO bounded stock, the reference price will be the issue price, not the listing price. If the issue price is less than 250, the tick size is going to be 0.01 for the month. The listing price will not affect the tick size.

Will the tick size of the stock be affected if it goes under corporate action like split, bonus, rights issue or dividend ?
No, the tick size will be the same as it was before the corporate action, until the next monthly review.

There are many tools and features on Dhan which will have more use cases now with the reduced tick size like seconds time frame, Real time trades, TradingView scalper, Scalper on charts etc…
Let us know your thoughts on this.

Naman

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