Up-Tick Rule with Decimals

Discussion in 'Trading' started by danger68, Mar 8, 2001.

  1. danger68

    danger68

    With NYSE now trading in decimals, what is considered a "tick" for implementation of the UP-TICK rule for shorting stocks?

    When NASDAQ finally is 100% decimal, what will they consider a "tick" for shorting purposes?

    Does anyone know when the Up-Tick rule will be eliminated?

    Thanks,

    Dan
     
  2. a tick is .01 for the nyse, as long as a trade is executed below where you are offering, you can be filled, you dont need an uptick. I just use market, so im always filled whenever anyway.
     
  3. trinfo

    trinfo

  4. Please pardon this newbee question...Could someone please explain the short/downtick rule to me? I thought that it means no shorting a stock on a downtick..period. But in reading this thread, I get the idea that I can short on a downtick if I use a market order as opposed to a limit order, right? In playing around with a simulator, CyberTrader, I believe that it won't allow *any* shorting on a downtick at all. Can someone please help me understand this (seemingly bad) rule? Thanks!
     
  5. Grizz

    Grizz

    Airspeed,
    On Nasdaq issues you must have an uptick at the bid price before a short order can take place. I'm gonna defer to someone else's expetise as far as NYSE issue's.