Uptick Rule

К оглавлению1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 
17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 
34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 
51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 
68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 
85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 
102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 
119 120 121 122 123 124 125 126 127 

When you short stock you are subject to what is called the uptick

rule. This means that you can't sell the stock short unless the most

recent trade was higher than the prior trade. If the price was 56 1/2

and the next tick in price was any fraction above the half, you can

short. Another part of the uptick rule is known as a zero-plus tick. If

the previous trade was 56 1/2, and the next trade was 56 9/16 followed

immediately by another tick of 56 9/ 16 , you could short at 56 9/16 —a zeroplus

tick. A zero-plus tick occurs when a trade takes place at the

same price as the previous trade but at a higher price than the last

different price. In this case, the stock ticked from 56 1/2 to 56 9/16, which

is an uptick. If the tick is followed by another tick of the same price

(56 9/16) it is a zero-plus tick and you can short it. The uptick rule was

instituted due to the role of short selling in the 1929 stock market

crash. At that time there was no uptick rule and you could sell stock

short at any price. Selling on a downtick exacerbated the decline.

After the Crash of 1929, the uptick rule was adopted.

When you short stock you are subject to what is called the uptick

rule. This means that you can't sell the stock short unless the most

recent trade was higher than the prior trade. If the price was 56 1/2

and the next tick in price was any fraction above the half, you can

short. Another part of the uptick rule is known as a zero-plus tick. If

the previous trade was 56 1/2, and the next trade was 56 9/16 followed

immediately by another tick of 56 9/ 16 , you could short at 56 9/16 —a zeroplus

tick. A zero-plus tick occurs when a trade takes place at the

same price as the previous trade but at a higher price than the last

different price. In this case, the stock ticked from 56 1/2 to 56 9/16, which

is an uptick. If the tick is followed by another tick of the same price

(56 9/16) it is a zero-plus tick and you can short it. The uptick rule was

instituted due to the role of short selling in the 1929 stock market

crash. At that time there was no uptick rule and you could sell stock

short at any price. Selling on a downtick exacerbated the decline.

After the Crash of 1929, the uptick rule was adopted.