uptick rule for short selling

Discussion in 'Professional Trading' started by kcgoogler, Jul 15, 2011.

  1. There is an individual stock circuit breaker where if a stock is down 10% since the previous day's close then you can only get short at the ask price or higher for the rest of the day and all of the next day too.
  2. Thanks thunderbolttr.

    I was thinking and since i use mostly limit orders at ask when selling short i will enter my positions only on upticks anyways. So glad it wont effect me. Moreover i hardly touch stocks; mostly ETFs.
  3. Are people with market maker designations able to get around this?
  4. I'm pretty sure they decided not to have any market maker exemption.
  5. Yes. IB has implemented the uptick rule for stocks who go down 10% in a day.