Tick Size Changes in the Saudi Stock Market

Effective Date: 29th June 2025
Important: All open orders will be automatically cancelled after market close on 26th June due to the tick size change deployment.

What’s Changing?
The Saudi Stock Exchange (Tadawul) is updating the Tick Size Matrix—the minimum price increment by which a stock can move. This update aims to improve price accuracy and trading efficiency.

Key Highlights:

1. Finer Price Movements for Lower-Priced Stocks

• All stocks priced below SAR 25 will now move in steps of SAR 0.01 (previously, the minimum move was SAR 0.02).

2. New Tick Size Bands for Higher-Priced Stocksa

• Additional bands will be introduced for stocks priced above SAR 250 and SAR 500.

3. Order Cancellation Before Transition

• All open orders will be cancelled before the new tick size goes live.

Comparison Table: Current vs New Tick Size Structure

Example:

• Before the Change: If a stock is priced at SAR 22.00, the next valid price is SAR 22.02 (tick size = SAR 0.02).
• After the Change: The next valid price will be SAR 22.01 (tick size = SAR 0.01).

This update allows traders more precise price control and may result in tighter bid-ask spreads.

Frequently Asked Questions (FAQs)

Q1: What happens to my GTC (Good ‘Til Cancelled) orders placed before 26th June?
A: All open orders will be automatically cancelled after market close on 26th June.

Q2: Can I place orders in the old tick size after 29th June?
A: No. The system will not accept any orders that don’t follow the new tick size matrix.

Q3: Will this change affect all listed stocks?
A: Yes, it affects all equities except debt instruments.

Q4: Will the mobile platform reflect the new tick size?
A: Yes. All platforms will be updated after market close on 26th June.

For more information, please contact our support team.