Shorting a Crossed/Locked Market

Discussion in 'Hardware' started by Klaorman, Jun 25, 2001.

  1. Klaorman


    When a stock's bid is on a downtick, shorting is not possible. However, I've seen many times where the downward momentum slows and people on ISLD start crossing/locking the market, but the actual bid is still on a downtick. Am I able to short into the ISLD crosses/locks? Of course, I'd rather wait for the small rally to start topping before I short, but I'm curious as to whether it's possible to short in the above situation.

  2. the answer is no, you cannot short a nasdaq stock at or below the bid a downtick under any circumstance.. the amex does allow shorting on downticks.. and on the NYSE you can simply create a hedge box..

    keep in mind that market makers are exempt from the downtick rule..

    hope this helps..

  3. Klaorman


    But I'm saying ISLD traders are bidding above the official bid, which is still on a downtick. For example, the bid is 49.99 and on a downtick, the ask is 50.00, and I see ISLD bids at 50.01. Can I short to the ISLD bids?

  4. in that case yes.. you can short the isld bid..