What is an Uptick?
Uptick refers to the increase in the market price of a security over the preceding transaction.
How Does an Uptick Work?
If a new trading price for a security is higher than the preceding one (even by one cent), the security is on an uptick. For example, stock XYZ is trading for $10.00 per share. If the next time stock XYZ is traded it sells for $10.01, it has had an uptick.
An uptick is also sometimes called a plus tick.
Why Does an Uptick Matter?
Upticks are most important when it comes to short-selling stocks. The "uptick rule," which was in place from 1938-2007, required every short-sale transaction be entered on an uptick. This rule was instated to keep short sellers from putting unjust pressure on a stock's price, adding to a security's downward spiral.
Personalized Financial Plans for an Uncertain Market
In today’s uncertain market, investors are looking for answers to help them grow and protect their savings. So we partnered with Vanguard Advisers -- one of the most trusted names in finance -- to offer you a financial plan built to withstand a variety of market and economic conditions. A Vanguard advisor will craft your customized plan and then manage your savings, giving you more confidence to help you meet your goals. Click here to get started.
Read This Next
As people flock to states like Florida and Texas for a warmer climate, someone they would rather not see is following them. Of the top five states among reported identity thefts, all are in...Read More →
Traders find success along many paths, but most follow discretionary or systemic trading rules. Discretionary traders buy and sell based upon what they think is going to happen in the markets....Read More →
Any American who has been to the U.K. can tell you that just because two countries speak the same language doesn't mean they...well, speak the same language. Consider...Read More →