Uptick Rule

Salty Gibbon

Experienced member
1,535 6
I am ok with the uptick rule for shorting stocks but could someone please explain to me the reasoning and logic behind it.
 

Trader333

Moderator
8,655 981
There is no real logic behind this other than an attempt to prevent a stock being shorted by everyone all at once. You will also find that there is a limit to how much of a stock can be shorted and when there is a momentum drop in certain stocks then getting a short trade on is sometimes impossible.


Paul
 

Mr. Charts

Legendary member
7,370 1,194
Salty,
The rule was introduced as a result of ignorant political congressional pressure. There are always people who think shorting is somehow "un-American" and damaging to US business and even if politicos can grasp how markets work, their constituents and business supporters rarely can.
Message in your box.
Best wishes,
Richard
 
 
AdBlock Detected

We get it, advertisements are annoying!

But it's thanks to our sponsors that access to Trade2Win remains free for all. By viewing our ads you help us pay our bills, so please support the site and disable your AdBlocker.

I've Disabled AdBlock