Cross-Tick Calculation

Definition ∞ Cross-tick calculation involves performing computations that span multiple discrete price levels or “ticks” within a financial instrument’s order book or an automated market maker. This method considers price changes that move beyond a single, minimal price increment. It is particularly relevant in systems where liquidity is distributed across various price points. Accurate cross-tick calculations are essential for precise trade execution and liquidity provision.
Context ∞ Cross-tick calculation is a critical element in the analysis of liquidity pool efficiency and trading strategy optimization in decentralized finance. News reports often mention its importance when discussing slippage, impermanent loss, and the design of concentrated liquidity protocols. The ongoing refinement of these calculations directly influences the fairness and profitability of digital asset trading environments.