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What is Teenie | Trading Basic Education

Published

4 years ago

December 28, 2020

Teenie is a trading term, that represents one-sixteenth of the one basis point. Now you are thinking that what is the basis? Right!

One basis point is one-hundredths of a percent.

Table of Contents

KEY POINTS

It describes one-sixteenth of one basis point, a basis point shows one-hundredth of a percent.
It works like Prior to decimalization
The security price could move using the teenie because it’s a smalled amount.
Trading standards move to base 10 rather than base 8 because of Decimalization.

How a Teenie Works

In the past, It was the smallest amount that moved security prices that could be traded. In 2001, the decimal system was introduced rather than fractions in price quotes ordered by the Exchange Commission and Securities, this decimal system known as decimalization. Teenie showed 0.0625 under the decimal system.

When traders say 1 cent they point out to “Teenie” because .01 cents is the new minimum that’s why most of the traders use this change. This includes one of the good strategies these strategies can be difficult to get profits with decimalization. As you know, spreads are smaller than (0.625 cents).

Still need more info regarding trading terms click here.