Short Exempt

DEFINITION of 'Short Exempt'

A short sale order in which the uptick rule doesn't apply to the trade. The trade can go through on a down tick, or a downward move in price, where a traditional short order trade has to be done on an uptick, or upward move in price.

BREAKING DOWN 'Short Exempt'

Any order that goes through needs to be marked long, short or short exempt, with short and short exempt being marked with SSH and SSE, respectively. The uptick rule is in place to prevent short sellers from unduly putting downward pressure on a stock with heavy selling volume.