A ratio that measures the effective tick size (tick size) for a security trading on an exchange. It is calculated using different inputs in the nominator and denominator. For example, it is measured as the dollar tick size divided by dollar closing price:

Tick-to-price ratio= dollar tick size/ dollar closing price

It may also be calculated by relating the dollar volume weighted average tick to the price:

Tick-to-price ratio= dollar volume weighted average tick/ price

In plain terms, the relative tick size or tick-to-price ratio is the absolute tick size divided by the possible price (or a measure of price) in the defined price range. For a price range, the lowest, middle, and highest values of this ratio are the absolute tick size used in the range divided by the highest possible price, the mid-point of the price range, and the lowest possible price, respectively.