Downtick
Definition of 'Downtick'A transaction on an exchange that occurs at a price below the previous transaction.In order for a downtick to occur, a transaction price must be followed by a decreased transaction price. This is commonly used in reference to stocks, but it can also be extended to commodities and other forms of securities. |
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Investopedia explains 'Downtick'For example, suppose stock ABC previously traded at $10. If its next trade occurs at a price below $10, then ABC will be on a downtick. |
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