# Tick Size

Price Step (tick size) is the minimum possible price change for an instrument on an exchange. The asset price can only move in multiples of the price step. For example, if the step is 0.01, the price can be 100.50, 100.51, 100.52, but not 100.505.

### Examples

**Price Step 0.01**

* Possible prices: 100.50, 100.51, 100.52
* Impossible prices: 100.505, 100.512

**Price Step 0.5**

* Possible prices: 100.0, 100.5, 101.0, 101.5
* Impossible prices: 100.1, 100.25, 100.3

**Price Step 1**

* Possible prices: 100, 101, 102
* Impossible prices: 100.5, 101.2

***

### Purpose of Price Step

**Trading Precision.** A small price step allows you to set prices more accurately and work with small fluctuations. This is especially important for low-value assets.

**Standardization.** All market participants use the same rules for setting prices. This simplifies order matching and order book analysis.

**Trading Simplification.** You don't need to specify prices with many decimal places, the order book is easier to read, and price movements are faster to analyze.

***

### Price Step Filter

In MoonTrader, you can filter trading instruments by price step using the "Price Step" filter. This helps you:

* Quickly find instruments with the required price step
* Select assets suitable for your strategy
* Filter instruments by technical parameters

***

### Placing Orders

#### Automatic Rounding

If you specify a price that is not a multiple of the step, the platform will automatically round it to the nearest valid value or show an error.

**Example:** price step = 0.5

* You enter: 100.3
* Platform rounds to: 100.5 or 100.0

#### Limit Orders

When placing a limit order, specify a price that is a multiple of the price step. Otherwise, the order will not be accepted by the exchange or will be automatically rounded.

#### Market Orders

For market orders, you don't need to specify a price — the order will execute at current prices in the order book. All prices in the order book are already multiples of the price step.

***

### Impact on Trading

#### Small Step (0.01, 0.001)

**Advantages:**

* More precise entry and exit prices
* More price levels in the order book
* Suitable for scalping

**Disadvantages:**

* More "noise" in price movements
* Order book can be overloaded with small orders

#### Large Step (1, 5, 10)

**Characteristics:**

* Less precision when placing orders
* Fewer price levels in the order book
* Price moves in larger jumps
* More difficult for scalping
* Requires adjustment of stop-loss and take-profit

***

### Price Step and Spread

The minimum spread always equals one price step.

**Example:** price step = 0.01

* Bid price: 100.50
* Ask price: 100.51
* Minimum spread: 0.01 (one step)

With low liquidity, the spread can be several price steps.


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