Investing Answers Building and Protecting Your Wealth through Education Publisher of The Next Banks That Could Fail
Investing Answers Building and Protecting Your Wealth through Education Publisher of The Next Banks That Could Fail

Uptick

What it is:

Uptick refers to the increase in the market price of a security over the preceding transaction.

How it works (Example):

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 it Matters:

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.

Related Terms View All
  • Kidnap Insurance
    Let's say John Doe is an oil executive who travels to Country X to negotiate a deal...
  • Vest Fleece
    For example, let's assume that John Doe receives options to buy 2,000 shares of Company...
  • Leg Out
    Let's say John Doe conducts an options straddle, which involves buying a call and a put...
  • Yield Elbow
    Also known as the term structure of interest rates, the yield curve is a graph that plots...
  • Long Bond
    The investing public can purchase long bonds from brokers. The desire to obtain these...