Tick Size in NSE Stocks, Futures and Options

Tick size is the smallest permitted step in a quoted trading price. Tick value is the money change caused by that step for your quantity. NSE uses different tick rules for cash securities, stock futures, stock options and index futures. Check the exact instrument and its assigned price step in the exchange’s security or contract file. The tables below separate those rules and explain when monthly reviews change the assigned tick.

A price step is different from a quantity

Tick size answers how finely a price can be quoted. Lot size answers how many underlying units are in a derivative contract. For instruments quoted in rupees per unit, tick value equals tick size multiplied by total units. More lots increase the money value of each tick without changing the price step.

A hypothetical instrument with a ₹0.05 tick can use prices ₹100.00, ₹100.05 and ₹100.10 on that grid; ₹100.03 is between permitted steps. This is a made-up grid example, not a claim that a cash share at ₹100 currently has that tick.

Strike spacing is different again. A strike is an option’s agreed exercise price; strike spacing is the gap between available strikes. The option premium is the price paid for the option, and its tick sets the permitted step in that traded price. An index move also differs from an option-premium move.

NSE cash-security and stock-futures bands

NSE/CMTR/67133 and NSE/FAOP/67134, both dated 13 March 2025, introduced the following revised bands from 15 April 2025. The cash circular covers its stated security series and excludes exchange-traded funds from the described framework. Stock futures follow the applicable underlying cash-security tick.

The cash circular specifies monthly review using the latest available closing price on the previous month’s last trading day, with any change applicable from the next month’s first trading day. The stock-futures circular aligns the tick with the underlying and applies revisions across its expiries. A price passing a band during the day does not by itself reset the assigned tick.

Use the daily exchange security or contract file to confirm the assigned value. Do not extend these NSE bands to BSE, an ETF, a commodity or a foreign-exchange contract without checking its own specification.

Index futures and options have separate rules

Under NSE/FAOP/67135, dated 13 March 2025 and effective 15 April 2025, index futures use the following index-level bands. The exchange reviews the index closing level on the last trading day of the month for the next month’s tick; the revision applies across expiries.

That circular retains ₹0.05 for index-option premiums. A current index level therefore does not imply that its option premium uses the same price step as its futures contract.

Stock options have a later change. NSE/FAOP/70382, dated 23 September 2025 and effective 3 November 2025, sets ₹0.01 where the reference underlying security price is below ₹250, and ₹0.05 at ₹250 or above. The test uses the underlying stock price, not the option premium. The circular specifies monthly review and applies changes to the listed near, middle and far expiries.

The NSE contract-specifications table shows this underlying-price rule. Its separate individual-securities explainer still states a uniform stock-option tick. That wording conflicts with the later specific circular; use the applicable contract file to settle the value for a trade.

Worked example: Bank Nifty option tick value

For the October 2026 contract month, the NSE market-lot file, checked 16 October 2026, lists Bank Nifty at 30 units per lot. Combine that contract quantity with the index-option premium tick of ₹0.05. The following prices and trade size are illustrative.

Assume 2 lots bought at premium ₹220.00 and later sold at ₹220.40. Total quantity is 60 units. A price tick changes the whole position’s gross value by ₹3.00, while one lot’s tick value is ₹1.50.

The result excludes costs. The trade is an arithmetic example, without any prediction about an actual option price. For another quantity, multiply the same verified tick by that quantity. The tick-value calculator can help check the multiplication; confirm its contract inputs first.

Spread, slippage and charges are separate

The bid-ask spread is the gap between available buying and selling quotes. Tick size limits the grid on which those quotes can sit; it does not tell you the observed spread or available quantity. A valid quote grid does not ensure your whole order trades at the first price.

Slippage means a difference between an expected price and the actual execution. A large order can trade at several prices. Calculate its final result from the executed quantities and prices rather than assuming each unit received the same fill.

A finer tick allows a finer price step, but it does not guarantee lower realised costs. Spread, depth, timing, charges and order handling still matter. No tax rate or broker tariff can be inferred from tick size alone.

A short check before placing a price

• Identify the exchange, segment, underlying and exact contract month.
• Read the assigned tick from the relevant security or contract file and record its effective period.
• Check lot size separately; a premium tick does not supply a contract quantity.
• Confirm intended limit and trigger prices meet the broker’s current validation rules.
• Recalculate planned money risk after rounding a price to a permitted step.
• Retain actual execution prices and costs for the later trade review.

Lot quantities can change while the price-step framework stays the same. A generic reference page may also lag a specific circular. The lot-size reference table is a starting point; the exchange file for the intended contract is the final quantity check.

NSE tick size changes: a dated timeline

The table lists the revisions that this page covers, with the circular that set each one. It is a summary of the circulars already cited above. Read the circular itself before relying on it.

If you are searching for "is the tick size still 0.05 for all stocks", the answer from the 2025 cash circular is no. Stocks priced below ₹250 use ₹0.01, and higher-priced shares use larger steps in the bands above.

Stock options tick size after the latest revision

Under NSE/FAOP/70382, the tick for a stock option depends on the price of the underlying stock, not on the option premium. Where the reference underlying price is below ₹250, the option tick is ₹0.01. At ₹250 or above it is ₹0.05. The premium itself might be ₹3 or ₹300, and the same tick applies.

Illustrative example: a stock with a reference price of ₹200 has an option tick of ₹0.01. With an assumed lot of 1,000 units, one tick is worth ₹0.01 × 1,000 = ₹10 for one lot. For a stock at ₹800 the tick would be ₹0.05, so one tick on the same assumed lot is ₹0.05 × 1,000 = ₹50. The stocks, prices and lot are made up.

How NSE reviews the tick each month

The cited cash-security and index-futures frameworks use a monthly review. NSE takes the closing price (or index level) from the last trading day of the month, and any change applies from the first trading day of the next month. A price that crosses a band in the middle of a month does not change the tick that month.

• The reference price date is the last trading day of the previous month.
• The new tick applies from the first trading day of the following month.
• For stock options the circular applies the change across the listed near, middle and far expiries.
• The daily security or contract file on NSE shows the tick in force.

Tick value per lot for index and stock contracts

Tick value equals tick size multiplied by the units in the position. The table uses this site's lot sizes (Nifty 65, Bank Nifty 30) and shows how the rule behaves in each band. The index levels in the table are examples to place each contract in a band, not current levels.

Use the lot size reference table for quantities and the F&O lot sizes explained guide for how they change.

Smaller tick, tighter spread: what it means for you

A smaller tick lets buyers and sellers place orders closer together, which can narrow the bid-ask spread. The bid-ask spread is the gap between the best buy and sell quotes. Impact cost is the extra you pay above the mid-price because your order is large enough to consume several price levels. A finer tick can reduce both, but only if enough orders sit at each price. Depth, volume and your order size still decide what you pay.

For an order, round your limit price to a valid step before you place it. Then recalculate risk from the rounded price. Slippage can still occur; see the slippage entry.

Common mistakes with tick size

• Using one tick for every stock.
• Applying the stock-option rule to index options.
• Treating the premium as the reference for the stock-option tick.
• Forgetting that the tick can change at the start of a month.
• Using an old lot size with the right tick.

Sources

• NSE/CMTR/67133: cash-security price bands, checked 16 October 2026.
• NSE/FAOP/67134: stock-futures alignment, checked 16 October 2026.
• NSE/FAOP/67135: index futures and index options, checked 16 October 2026.
• NSE/FAOP/70382: revised stock-option price steps, checked 16 October 2026.
• NSE individual-securities page: conflicting stock-option wording, checked 16 October 2026.
• NSE market lots: expiry-specific quantities, checked 16 October 2026.