Minus Tick

DEFINITION of 'Minus Tick'

Designates a trade that occurs at a lower price than the immediately preceding trade. Also referred to as "downtick" or "zero minus tick".

BREAKING DOWN 'Minus Tick'

Brokerage firms require that short sell orders follow the "tick test", which means that if a stock is trading at a minus tick price (lower than the previous sale), a short sale at that time is not allowed. Generally, short sales are only allowed to occur on an uptick. This rule helps prevent traders from destabilizing a stock's price by short selling on minus ticks.

RELATED TERMS
  1. Short Selling

    Short selling is the sale of a security that is not owned by ...
  2. Tick Size

    The minimum price movement of a trading instrument. The price ...
  3. Zero Minus Tick

    A securities trade executed on an exchange at the same price ...
  4. Tick Test Rules

    A now defunct rule that placed restrictions on when a short sale ...
  5. Zero Plus Tick

    A security trade that is executed at the same price as the preceding ...
  6. Tick

    The minimum upward or downward movement in the price of a security. ...
Related Articles
  1. Active Trading Fundamentals

    Guide to Short Selling

    Want to profit on declining stocks? This trading strategy does just that.
  2. Active Trading Fundamentals

    The Short And Distort: Stock Manipulation In A Bear Market

    High-quality stock reports needn't be confused with stock manipulators' dramatic claims.
  3. Your Practice

    How Do Edward Jones and Merrill Lynch Compare?

    Merrill Lynch and Edward Jones have both been around for decades, but they approach business very differently. Here's the lowdown on how they compare.
  4. Investing News

    With Short Interest Surging, Is it Time to Buy?

    What do you think the smart money is doing when the market moves higher? Apparently, they're building short positions.
  5. Mutual Funds & ETFs

    How to Beat Back ETF Fees

    Fees are an inescapable aspect of investing, but here are some small things you can do to lessen their impact on your ETF returns.
  6. Trading Strategies

    Why Is Short Selling Legal? A Brief History

    In the U.S., before a short sale can occur, broker/dealers must have reasonable grounds to believe that shares can be borrowed and delivered on time.
  7. Mutual Funds & ETFs

    The Long and Short of Trading Oil ETFs/ETNs (UWTI)

    Here are several oil ETFs to consider for both shorts and longs.
  8. Stock Analysis

    Are Brick and Mortar Retailers Headed Into Bear Markets?

    The online sales revolution has altered the playing field for brick and mortar retailers, placing them at a disadvantage to purely web-based operations.
  9. Mutual Funds & ETFs

    Should You Go Short or Long Oil with ETFs?

    If you want to go long or short oil consider these ETFs. But either way, use caution.
  10. Investing News

    4 Ways to Short China with ETFs

    If the Chinese economy proves to be a house of cards, here are a few ways to trade it.
RELATED FAQS
  1. What is a derivative?

    A derivative is a contract between two or more parties whose value is based on an agreed-upon underlying financial asset, ... Read Full Answer >>
  2. How long does a stock account have to be dormant before it can be escheated?

    A stock account is typically considered dormant and eligible for escheatment after five years of inactivity; however, this ... Read Full Answer >>
  3. What is the interest rate offered on a typical margin account?

    Interest rates on margin accounts vary according to the size of the loan and the brokerage firm being used. Generally, interest ... Read Full Answer >>
  4. How can an investor profit from a fall in the utilities sector?

    The utilities sector exhibits a high degree of stability compared to the broader market. This makes it best-suited for buy-and-hold ... Read Full Answer >>
  5. What is the cost of a share purchase?

    When investors purchase shares of stock, the price paid includes two components: the price of the stock and the fee charged ... Read Full Answer >>
  6. What is the difference between fee-based advisors and commission-based advisors?

    The difference between a fee-based adviser and a commission-based adviser is that the former collects a flat fee for investment ... Read Full Answer >>
Hot Definitions
  1. Discouraged Worker

    A person who is eligible for employment and is able to work, but is currently unemployed and has not attempted to find employment ...
  2. Ponzimonium

    After Bernard Madoff's $65 billion Ponzi scheme was revealed, many new (smaller-scale) Ponzi schemers became exposed. Ponzimonium ...
  3. Quarterly Earnings Report

    A quarterly filing made by public companies to report their performance. Included in earnings reports are items such as net ...
  4. Dark Pool Liquidity

    The trading volume created by institutional orders that are unavailable to the public. The bulk of dark pool liquidity is ...
  5. Godfather Offer

    An irrefutable takeover offer made to a target company by an acquiring company. Typically, the acquisition price's premium ...
Trading Center