Short Exempt

AAA

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.

INVESTOPEDIA EXPLAINS '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.

RELATED TERMS
  1. Uptick

    A transaction for a financial instrument that occurs at a higher ...
  2. Minus Tick

    Designates a trade that occurs at a lower price than the immediately ...
  3. Plus Tick

    A price designation referring to the trading of a security at ...
  4. Uptick Rule

    A former rule established by the SEC that requires that every ...
  5. Securities And Exchange Commission ...

    A government commission created by Congress to regulate the securities ...
  6. Downtick

    A transaction on an exchange that occurs at a price below the ...
Related Articles
  1. 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.
  2. Active Trading Fundamentals

    Short Selling Tutorial

    Want to profit on declining stocks? This trading strategy does just that.
  3. Short selling -- selling borrowed stock in hopes the price goes down -- was unregulated until the Great Depression.
    Investing Basics

    Why Is Short Selling Legal? A Brief History

    Short selling -- selling borrowed stock in hopes the price goes down -- was unregulated until the Great Depression.
  4. Chart Advisor

    Falling Prices Are Dragging These Gold Stocks Down

    There have been few commodities that have escaped the wrath of downward momentum over the past several months. Gold has been no exception.
  5. Steps to pick the right options brokerage account depending on your needs, style of trading, etc. It should be unbiased - This article is mainly for a trader who does not know how to pick a option brokerage account
    Options & Futures

    Pick the Right Brokerage Account for Options Trading

    Follow these steps to pick the right options brokerage account depending on your trading needs and style of trading.
  6. Active Trading Fundamentals

    What's the difference between a long and short position in the market?

    Understand long and short positions for stocks and option contracts; combine long and short positions for added leverage or hedging in your portfolio.
  7. Brokers

    What's the difference between a cash account and a margin account?

    Compare and contrast margin and cash accounts. Margin accounts offer short-term loans, leverage on existing portfolios, and opportunities in bear markets.
  8. Chart Advisor

    These Stocks Are Breaking Below Horizontal Support

    The S&P 500 is pulling away from long-term channel top, which indicates that a reversal may be underway. Here are four stocks to consider for shorts.
  9. Active Trading

    The Elder-Ray Indicator: Seeing Into The Market

    Elder-ray helps determine the strength of competing groups of bulls and bears so you know when to buy and when to short.
  10. Active Trading Fundamentals

    10 Timeless Rules For Investors

    Find out what most investors are doing wrong, and how you can do it right.

You May Also Like

Hot Definitions
  1. SWOT Analysis

    A tool that identifies the strengths, weaknesses, opportunities and threats of an organization. Specifically, SWOT is a basic, ...
  2. Simple Interest

    A quick method of calculating the interest charge on a loan. Simple interest is determined by multiplying the interest rate ...
  3. Special Administrative Region - SAR

    Unique geographical areas with a high degree of autonomy set up by the People's Republic of China. The Special Administrative ...
  4. Annual Percentage Rate - APR

    The annual rate that is charged for borrowing (or made by investing), expressed as a single percentage number that represents ...
  5. Free Carrier - FCA

    A trade term requiring the seller to deliver goods to a named airport, terminal, or other place where the carrier operates. ...
  6. Law Of Supply And Demand

    A theory explaining the interaction between the supply of a resource and the demand for that resource. The law of supply ...
Trading Center