Upstick rule explained

Rules For Short Selling

As per the SEC rule, short sale should only be made on an upstick or a zero-plus tick. One cannot sell them on a downtick. Upstick means trade at a higher price than the previous trade. Downstick means trade at a lower price than previous trade. Zero-plus tick means trade at a similar price to previous trade. This rule is also called the “plus tick rule” or the “tick-test rule”.

Powered by ScribeFire.