The smallest price change increment that a future contract is allowed to have by an exchange. The minimum price movement for a given contract is set by exchange rules and is standardized by the underlying. For example, the minimum amount of change for a gold futures is set at $0.10 per troy ounce or $10 per contract. Likewise, the minimum amount of change for a silver futures represents $0.005 per troy ounce, worth $25 per contract.
This is also referred to as a tick.
