TT With A Tick Order

Back in the day of floor trading, customers would often give their floor brokers instructions to work an order at a price and give them discretion to pay up a tick if they sensed the market was about to move away from the resting order. The instructions were communicated something like “sell 100 at 30 with a tick.” The broker would then work to sell a quantity of 100 at a price of 30, but if the bid quantity at the price of 29 started dissipating, the broker would try to sell 100 at 29. 

The basic premise of “with a tick” is to try and make an extra tick on a trade. The monetary value of an extra tick could be significant. Not very much business is transacted on the trading floor anymore, but the idea of making an extra tick on a trade is as popular as ever.

TT’s With A Tick orders run on a servers in colocated data centers. The order type is intended to be placed at the best bid or offer in a one-tick wide market. Effectively, you have joined the bid (or ask) and are leaning on the size of the ask (or bid). You configure the With A Tick parameter to specify at what point you want the order type to reprice the order one tick towards the market. The parameter can be expressed in terms of an absolute number or as a percentage of the size of your order. If the quantity that you are leaning on drops to or below your threshold, TT’s With A Tick order reprices the order one tick.

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