diff --git a/Common/Securities/IndexOption/IndexOptionSymbolProperties.cs b/Common/Securities/IndexOption/IndexOptionSymbolProperties.cs
index 0ed12a3c55d2..2869cae9b9af 100644
--- a/Common/Securities/IndexOption/IndexOptionSymbolProperties.cs
+++ b/Common/Securities/IndexOption/IndexOptionSymbolProperties.cs
@@ -72,11 +72,17 @@ internal void UpdateMarketPrice(BaseData marketData)
         /// <summary>
         /// Minimum price variation, subject to variability due to contract price
         /// </summary>
-        /// <remarks>https://www.cboe.com/tradable_products/vix/vix_options/specifications/
+        /// <remarks>https://www.cboe.com/tradable_products/sp_500/mini_spx_options/specifications
+        /// https://www.cboe.com/tradable_products/vix/vix_options/specifications/
         /// https://www.cboe.com/tradable_products/sp_500/spx_options/specifications/
         /// https://www.nasdaq.com/docs/2022/08/24/1926-Q22_NDX%20Fact%20Sheet_NAM_v3.pdf</remarks>
         public static decimal MinimumPriceVariationForPrice(Symbol symbol, decimal? referencePrice)
         {
+            if (symbol?.ID.Symbol == "XSP")
+            {
+                return 0.01m;
+            }
+
             if(symbol == null || !referencePrice.HasValue)
             {
                 return 0.05m;
diff --git a/Tests/Common/Securities/IndexOption/IndexOptionSymbolPropertiesTests.cs b/Tests/Common/Securities/IndexOption/IndexOptionSymbolPropertiesTests.cs
new file mode 100644
index 000000000000..f8c3a630761c
--- /dev/null
+++ b/Tests/Common/Securities/IndexOption/IndexOptionSymbolPropertiesTests.cs
@@ -0,0 +1,52 @@
+/*
+ * QUANTCONNECT.COM - Democratizing Finance, Empowering Individuals.
+ * Lean Algorithmic Trading Engine v2.0. Copyright 2014 QuantConnect Corporation.
+ *
+ * Licensed under the Apache License, Version 2.0 (the "License");
+ * you may not use this file except in compliance with the License.
+ * You may obtain a copy of the License at http://www.apache.org/licenses/LICENSE-2.0
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+*/
+
+using System;
+using NUnit.Framework;
+using QuantConnect.Securities;
+using QuantConnect.Securities.IndexOption;
+
+namespace QuantConnect.Tests.Common.Securities.IndexOption
+{
+    [TestFixture]
+    public class IndexOptionSymbolPropertiesTests
+    {
+        [TestCase("XSP", 2.99, 0.01)]
+        [TestCase("XSP", 3, 0.01)]
+        [TestCase("XSP", 3.01, 0.01)]
+        [TestCase("SPX", 2.99, 0.05)]
+        [TestCase("SPX", 3, 0.10)]
+        [TestCase("SPX", 3.01, 0.10)]
+        public void MinimumPriceVariationForPrice(string ticker, decimal referencePrice, decimal expected)
+        {
+            var underlying = Symbol.Create(ticker, SecurityType.Index, Market.USA);
+            var option = Symbol.CreateOption(underlying, ticker, Market.USA, OptionStyle.European,
+                OptionRight.Call, 100m, new DateTime(2026, 1, 16));
+
+            Assert.AreEqual(ticker, option.ID.Symbol);
+            Assert.AreEqual(ticker, option.Underlying.ID.Symbol);
+            Assert.AreEqual(expected, IndexOptionSymbolProperties.MinimumPriceVariationForPrice(option, referencePrice));
+        }
+
+        [Test]
+        public void XspMinimumPriceVariationWithoutReferencePrice()
+        {
+            var underlying = Symbol.Create("XSP", SecurityType.Index, Market.USA);
+            var option = Symbol.CreateOption(underlying, "XSP", Market.USA, OptionStyle.European,
+                OptionRight.Call, 100m, new DateTime(2026, 1, 16));
+
+            Assert.AreEqual(0.01m, IndexOptionSymbolProperties.MinimumPriceVariationForPrice(option, null));
+        }
+    }
+}