|
Zero plus tick refers to a transaction where the price is the same as the previous transaction price, but is still greater than a preceding trade at a different price. For example, in a trade executed at $15, $16 and $16, the last $16 is the zero plus tick. The zero plus tick of $16 was executed at the same price as the previous transaction, but was higher than the preceding tick of $15. A zero plus tick is associated with short sale strategy: according to the SEC, a zero plus tick (or a "plus tick", where the stock continues to increase instead of leveling off) must occur for a trader to engage in short selling. The zero plus tick requirement is a safeguard against manipulative price depreciation. The opposite of a zero plus tick is a zero minus tick. A zero plus tick may be referred to as a "zero uptick." |
