🪣Price / Tick Bucketing

What is a Tick Size?

Tick size (or price increment) is the minimum price movement possible within a given market. The price movements of different trading instruments vary, with their tick sizes representing the minimum amount they can move up or down on an exchange.

This helps to ensure a degree of standardization in the structure of orders on the order book and prevents participants from losing out due to a small change in price.

Generally, traditional asset exchanges maintain a standard tick size across the possible price range, such as increments of $0.01. However, the level of precision varies between high and low probability outcomes.

Let's look at some examples to understand better:

• Distinguishing between a 0.001 (Probability) / 1000 (Decimal Odds) and 0.002 (Probability) / 500 (Decimal Odds) event requires greater precision

• Distinguishing between 0.500 (Probability) / 2.0 (Decimal Odds) and 0.501 (Probability) / 1.99601 (Decimal Odds) may be considered too precise and lead to a poor user experience

Ultimately, tick size provides a level of precision and control to the marketplace, helping to ensure that all participants can be confident of a fair and competitive order book.

Tick Bucketing on Aver

When placing an order on app.aver.exchange or interacting with the Aver protocol via the SDK, you'll notice a slight change in the price before the order is posted. This is a result of Tick Bucketing, which is the process of adjusting prices to align to the specified set of acceptable increments.

Aver has two types of markets, each with it's own default tick bucketing schema:

• Sports Markets - Decimal Tick Bucketing

• Current Event Markets - Probability Tick Bucketing

Please note that you can switch between Decimal, American and Probability odds for conveniance in the application settings.

The Decimal and Probability bucketing schema, as well as examples of how they work, are shown below.

Decimal Bucketing Schema

Minimum	Maximum	Price Increment
1000	100	10.0
100	50	5.0
50	30	2.0
30	20	1.0
20	10	0.5
10	6	0.2
6	4	0.1
4	3	0.05
3	2	0.02
2	1.01	0.01

Probability Bucketing Schema

Minimum	Maximum	Price Increment
0.001	0.002	0.0001
0.002	0.005	0.00025
0.005	0.01	0.0005
0.01	0.02	0.001
0.02	0.05	0.0025
0.05	0.1	0.005
0.1	0.99	0.01

Decimal Bucketing Example

If you are interacting with sports markets, decimal bucketing is applied directly to the price entered in the betslip.

Entering a value of 5.0 will not be adjusted, as it already aligns to an acceptable 'tick'.

• 5.0 falls between 4.0 and 6.0, and requires that an acceptable value falls within 0.1 increments.

• (i.e. 4.1, 4.2, 4.3, ..., 4.9, 5.0, 5.1, ..., 5.8, 5.9 are all acceptable)

Entering a value of 7.243 would lead to a bucketed value of 7.2.

• 7.243 falls between 6.0 and 10.0 and requires that an acceptable value falls between 0.2 increments.

• (i.e. 6.0, 6.2, 6.4, ..., 7.0, 7.2, 7.4, ..., 9.6, 9.8, 10.0 are all acceptable)

• Since 7.2 is the closest acceptable value to 7.243..., this is the price at which the program will attempt to execute and place your order.

Probability Bucketing Example

If you are interacting with current event markets, probability bucket is applied directly to the price entered in the betslip.

Entering a value of 0.007 will not be adjusted, as it already aligns to an acceptable 'tick'.

• 0.007 falls between 0.005 and 0.01, and requires that an acceptable value falls within 0.0005 increments.

• (i.e. 0.0055, 0.006, 0.0065, 0.007, ... , 0.09, 0.0095, 0.01 are all acceptable)

Entering a value of 0.2345 would lead to a bucketed value of 0.23.

• 0.2345 falls between 0.1 and 0.99 and requires that an acceptable value falls within 0.01 increments.

• (i.e. 0.1, 0.11, 0.12, ..., 0.23, 0.24, ..., 0.98, 0.99 are all acceptable)

• Since 0.23 is the closest acceptable value to 0.2345, this is the price at which the program will attempt to execute and place your order.