shorting QQQs

Discussion in 'Order Execution' started by mockingbird, Apr 4, 2002.

  1. :confused:
    I had read on this forum at some time that you can short QQQs on a downtick, but I have also recently heard that the uptick rule applies to them and you cannot short them on a downtick.

    Since I have heard different things, can anyone help straighten me out on what shorting rules apply to QQQ? I know they trade on both amex and nyse. I am also unclear on whether the uptick rule is a nasdaq rule or whether it is an SEC rule that applies also to nyse and amex as well as nasdaq. Does it apply to amex? Does it apply to QQQs?

    Related question, if the rule does apply can I get around it if I hit a bid 1 or 2 cents off the inside bid when shorting?

    Thanks in advance for your help.
  2. Tom Frey

    Tom Frey

    you can short the QQQ on a downtick but i prefer routing to ecn's as they fill way faster than NYSE, AMEX whatever
  3. I think I heard that on CNBC a few weeks ago. The host should have just responded "Interesting.... WROOOONG! ...but interesting". The QQQs are exempt from the uptick rule, just like DIA and SPY.

    NASDAQ's uptick rule (for stocks) is different from NYSE's.