A Price Tick Is

question 8

Multiple Choice

A price tick is

• A)The maximum amount by which the price can move in a day.
• B)The minimum amount by which the price can move.
• C)The bid-ask spread on the price.
• D)The minimum amount of trading required on the exchange per trade.

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Definitions:

Simple Interest

Simple interest is a method of calculating the interest charge on a loan based on the original principal balance without compounding.

Rate of Return

The financial improvement or decline in an investment across a particular period, indicated as a percentage of the investment’s entry cost.

Interest

The fee associated with the right to borrow funds, usually indicated as a yearly percentage rate.

Compounded Annually

This refers to the process of calculating interest on both the initial principal and the accumulated interest from previous periods on a yearly basis.