Up-Tick Rule with Decimals

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

  1. 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?


  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


  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


    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.