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. Zero Minus Tick

    A securities trade executed on an exchange at the same price ...
  2. Tick Index

    The number of stocks trading on an uptick minus the number of ...
  3. Tick

    The minimum upward or downward movement in the price of a security. ...
  4. Plus Tick

    A price designation referring to the trading of a security at ...
  5. Closing Tick

    The difference between the number of stocks that closed higher ...
  6. Zero Plus Tick

    A security trade that is executed at the same price as the preceding ...
Related Articles
  1. Trading

    Advantages Of Data-Based Intraday Charts

    We take a look at these chart intervals and how we can use them to our advantage.
  2. Trading

    Why is Short Selling Legal? A Brief History

    Short selling -- selling borrowed stock in hopes the price goes down --used to be unregulated.
  3. Investing

    The Uptick Rule: Does It Keep Bear Markets Ticking?

    This rule prevents traders from driving stocks down, but its effect on market volatility is debatable.
  4. Managing Wealth

    Is '100 Minus Your Age' Outdated?

    A longstanding rule of thumb says that your stock allocation should equal "100 minus your age." Now, some experts suggest being a little more aggressive.
  5. Trading

    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.
  6. Investing

    The Basics Of Short Selling

    Short sellers enable the markets to function smoothly by providing liquidity, and also serve as a restraining influence on investors’ over-exuberance.
  7. Trading

    An Introduction To Trading Forex Futures

    We explain what forex futures are, where they are traded, and the tools you need to successfully trade these derivatives.
  8. Investing

    Why Short Sales Are Not For Sissies

    Short selling has a number of risks that make it highly unsuitable for the novice investor.
  9. Trading

    Short Sales For Market Downturns

    This strategy can help in market downturns, but it's not for inexperienced traders.
RELATED FAQS
  1. What is the difference between pips, points, and ticks?

    Learn the differences between points, ticks and pips and how each are used by investors to measure price changes in stocks, ... Read Answer >>
  2. What are the best technical indicators to complement the Uptick Volume?

    See how uptick volume can be used to help confirm price trends from nearly every trend-following indicator, especially when ... Read Answer >>
  3. What is a common strategy traders implement when using the Uptick Volume?

    Learn how traders use uptick and downtick volume with VWAP cross to identify trends and momentum and identify points of big ... Read Answer >>
  4. What is the Uptick Volume formula and how is it calculated?

    Learn more about uptick volume, a measurement of the number of trades that take place during a time when an asset's price ... Read Answer >>
  5. What is a common strategy traders implement when using the Volatility Ratio?

    Learn how to create a strategy using the volatility ratio with uptick volume and downtick volume to signal reversal of trend ... Read Answer >>
  6. What kinds of restrictions does the SEC put on short selling?

    Learn about the rules and regulations on short selling enforced by the U.S. Securities and Exchange Commission, or SEC, including ... Read Answer >>
Hot Definitions
  1. Cash Flow

    The net amount of cash and cash-equivalents moving into and out of a business. Positive cash flow indicates that a company's ...
  2. PLUS Loan

    A low-cost student loan offered to parents of students currently enrolled in post-secondary education. With a PLUS Loan, ...
  3. Graduate Record Examination - GRE

    A standardized exam used to measure one's aptitude for abstract thinking in the areas of analytical writing, mathematics ...
  4. Graduate Management Admission Test - GMAT

    A standardized test intended to measure a test taker's aptitude in mathematics and the English language. The GMAT is most ...
  5. Magna Cum Laude

    An academic level of distinction used by educational institutions to signify an academic degree which was received "with ...
  6. Cover Letter

    A written document submitted with a job application explaining the applicant's credentials and interest in the open position. ...
Trading Center