What is a Forex tick and how ticks differ from points, trading using ticks
The price of a currency pair on Forex moves in a rather peculiar way, the trend line is never straight, and there is almost always a different distance between two neighboring quotes.
You probably know that the smallest value of a Forex price change is a point or, as it is also called, a pip.
A point is the minimum change of the last character in the quote, for example, in the quote 3.2578 7 it will be 0.0000 1 ,
In practice, a change by one point looks like this: 3.2578 7 + 0.00001 = 3.2578 8 , similarly in three-digit quotes this is the third decimal place, and in two-digit quotes the second.
But if a pip is a minimum price change, then what is a “Forex tick”? We can say that a Forex tick is a real change in the Forex price. That is, the distance between neighboring quotes.
For example, the first quote is 1.2011, and the next one is 1.2015, in this case the tick on Forex is equal to 4 points.
Pip Value Calculator - https://time-forex.com/praktika/kalkulator-stoimosti-punkta
Tick chart in the trading platform
Our MetaTrader 4, which is most often used for Forex trading, also has a tick chart:
To see it, simply open the new order window. On the BTCUSD pair, it's easiest to see how much one tick differs from one pip; one price movement here typically amounts to a couple dozen pips.
You can also monitor the price on the main chart or in the Market Watch window, but the tick chart shows this movement more clearly.
Forex tick in strategies
This movement is widely used in short-term forex trading strategies such as scalping or pipsing.
For these purposes, a special indicator or even an entire trading platform is often used - https://time-forex.com/skalping/platforma-tik-forex
The essence of the strategy is to identify movement patterns and then apply them to future trading. The strategy is quite labor-intensive and risky, but it allows you to quickly make money with a small deposit.
