Zero Minus Tick
What it is:
Also called a zero, a zero minus tick is a trade that occurs at the same price as the trade preceding it but lower than the last trade at a different price. A zero minus tick is the opposite of a zero plus .
How it works/Example:
Let's say the first trade of the day for Company XYZ shares at $18. The third trade is 1,500 shares at $18 (the same price). The third trade is called a zero minus tick because that $18 trade is the same price as the previous trade but lower than the last trade that occurred at a different price (the $20 trade).
Although the is usually used in reference to , it can also apply to bonds, commodities and other traded securities.
Why it matters:
A zero minus tick suggests that a stock's price.is trending down and staying there. The SEC used to disallow shorting on downticks or zero minus ticks in order to prevent traders from jumping on the bandwagon to destabilize a