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".


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.

  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. ...
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