Uptick Rule
К оглавлению1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 1617 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.