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Market Intelligence › Basic Terminologies
Minimum price movement, freeze quantity, and the basis of order rules
Published by The Retail Trader · AUG 09, 2026 · Order Flow
Price does not move continuously; it moves on a ladder. The height of a rung is called the tick size, and the two ends of the ladder are the price band. The exchange sets both.
Tick size is the smallest movement that can happen in price. In most equities it is five paise, and in some segments it is different.
This means your limit order can only be at a multiple of the tick — the system will not accept a price in between.
Two more limits apply every day:
• The price band is the maximum movement allowed that day, measured from the previous close.
• In derivatives, the dynamic band can widen during trading.
• Freeze quantity is the maximum size of a single order — an order larger than that is rejected.
• Breaking a large order into smaller pieces is the right way to handle it.
In a very cheap stock, the tick size becomes a hidden cost. On a five-rupee stock, a tick of five paise is a whole one percent — at that level the spread alone can be bigger than your expected profit.
This article is for education only — it is not a buy or sell recommendation, makes no claim of guaranteed returns, and is not advisory. Rules, rates and mechanics change from time to time with the exchange, SEBI and RBI, so verify every number yourself with your broker or an official source.