Dictionary of Finance and Investment Terms: minimum fluctuation
minimum fluctuation
smallest possible price movement of a security or options or futures contract. For example, most stocks on the New York Stock Exchange trade with a minimum fluctuation of one-eighth of a point. Some low-priced options contracts trade with a minimum fluctuation of one-sixteenth of a point. Minimum fluctuations are set by the securities, futures, or options exchanges regulating each security or contract. Also called minimum tick.
