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Options Trading Corner: Understanding Price Increments

Options are quoted in specific price increments, and these increments can vary depending on contract prices, the market and the underlying security. Use the real-time quote for options contracts as your guide. For example, if the bid and ask prices are quoted in pennies, then generally you should be able to place a trade using penny increments.

Certain options are quoted in penny increments regardless of price, including high-volume securities such as QQQ, SPY, IWM, XIU, XGD, etc. Otherwise, price increments for most options contracts are as follows:

Montréal Exchange

Contract Price Range Price Increment
$0.01 - $0.10 $0.01
$0.10 - $3.00 $0.01 or $0.05
$3.00+ $0.05

U.S. Options

Contract Price Range Price Increment
$0.10 - $3.00 $0.01 or $0.05
$3.00+ $0.05 or $0.10

If you have any questions, please contact an Investment Representative at 1-800-465-5463. We’re here to assist you 24 hours a day, seven days a week.

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