What is a tick?

In the early days there wasn’t any decimal system implemented in the stock market so the prices changed by one unit. There are two terms related to the tick and these are the up tick and the down tick the up tick means that the stock price has increased by a unit and the down tick which represents a decrease of the stock price. The stock usually moves up or down 1/8, 1/16, or 1/32 of a dollar. Also by using ticks investors try to predict the market’s trend.